USDCAD buyers are making a play with a break away from the 50% and swing area

The USDCAD is making a break to the upside. In the process, the price of the USDCAD is moving above its 50% retracement level at 1.33971 and the high of a swing area at 1.3408.

If the buyers mean business, staying above the 50% would keep the bullish bias fully intact. Move back below and traders could start to get disappointed on the failed break above the high swing area.

The run higher in the US dollar today has been helped by higher rates. However over the last hour so the rates have started to decline. The 10-year yield is now near unchanged on the day at 4.001%. The USDCADs moved to new highs is counter to US rate move (at least for now). That may be a caveat to take into consideration.

Although US stocks remain lower, they are coming off their highs. The Nasdaq is down -58 points. The S&P is down -17.75 points, about 1/2 of the declines from earlier today.

Watching the 50% midpoint for support buying if the buyers want to keep full control.

This article was written by Greg Michalowski at Source