The USDCAD buyers are making a play with a move above the 38.2% retracement of move down from the September high at 1.34987. The price is also trying to extend above a swing area between 1.3488 and 1.35024. Getting and stay above that area would have traders looking toward the high price from last Thursday at 1.35229 and then the 200 and 100 bar moving averages on the 4-hour chart and the 50% midpoint of the same move down. That cluster of resistance comes between 1.3536 and 1.3543 (see green and blue lines on the chart below).
On the downside, traders will be watching the 1.34889 level is a close support level. Staying above is the best case scenario for traders today (see low level of the swing area on the chart below).
This article was written by Greg Michalowski at www.forexlive.com. Source