USDCAD hits a new 4-month low, Buyers eyeing potential reversal

The USDCAD is trading to another new low today- taking out the low from yesterday at 1.33107. The low price reached 1.3303. That got within 5 pips of the low of a swing area I have that runs from 1.3298 to 1.33203. The current price remains in that area at 1.3308.

Technically, low risk buyers should have interest here with a stop on a momentum move below 1.3298. A move above 1.33203 should give the buyers more short term confidence with more work to do.

If the low holds, and the price extends back above 1.3320, the next target area would be 1.3379 followed by the broken 61.8% of the 2023 trading range at 1.33999 (call it 1.3400).

Yesterday, the same levels were in play and the price bounced off the swing area below, but could not get through targets above. Will the sellers keep the momentum going through the floor area today? A break below would target 1.32613 and then 1.3207 to 1.32299.

This article was written by Greg Michalowski at Source