The USDCAD moved lower in the early US session today, helped by lower employment cost data. The pair may also shift the focus to the FOMC from the BOC. Recall, the BOC did cut for the 2nd consecutive meeting last week. Oil price are also higher today after persistent weakness.
Technically, the pair moved back toward and below the high of the “Red Box” that confined most of the trading going back to April. However, the low of the swing area near the HIGH of the Red Box between 1.3784 to 1.3803, was able to hold support.
Technically speaking that area needs to hold support to keep the buyers in control
Conversely, if the area is broken – and stay broken – I would expect buyers to turn to sellers on the failure to the upside.
For now, buyers bought the dip.
This article was written by Greg Michalowski at www.forexlive.com. Source