USDCAD buyers in control above the 50% retracement and a key swing area.

The USDCAD moved sharply higher yesterday after the better than expected US CPI data. The run to the upside extended above its 100-day moving average 1.3557. However the price rotated back to the downside in trading today, and move back below that moving average level.

The corrective move lower returned to retest a key swing area between 1.3526 and 1.35428. Support buyers did show up in that area, which has helped push the price back to the upside where the 100-day moving average is being retested in the early North American session.

Going forward, if the buyers are to remain in control, staying above the 1.3526 – 1.35428 would need to hold support. Conversely, sellers who are skeptical of the last move and break higher, will be eyeing the 100-day moving average 1.3557 for bias-defining clues. Staying below keeps sellers in the game, with hopes of a move below 1.3526. Moving above would not be good from a technical and bias-defining perspective

This article was written by Greg Michalowski at Source