The USDCAD reached above the high of a swing area on Friday to trade and the topside trendline on the daily chart near 1.3861 area. The high price reached 1.38799 before stalling. Yesterday the price fell back below the broken trendline moving toward support near 1.3800.
In trading today the price moved up in the Asian session back down in the early European session before rotating to the upside off of the stronger employment cost index in the US. That has taken the price back toward the hive from Friday but sellers have been leaning. It would take a move above 1.38799 to increase a bullish bias. Sellers leaning against that level would likely cover on a break above. On the downside, the Asian session high near 1.3851 will be eyed as close support. Below that is the rising 100 hour moving average near 1.38255.
Early today, the price did move below that moving average line but could not sustain momentum after pushing toward the 1.3800 natural support. Sellers turned to buyers on the move back above the 100 hour moving average.
This article was written by Greg Michalowski at www.forexlive.com. Source