The USDCAD moved higher earlier in the day and in the process, was able to extend below the 50% midpoint of the move down from the May 2023 high. The midpoint level came in at 1.33729. The high price reached about 5 pips higher at 1.33774 before failing and rotating back to the downside.
The subsequent move lower has taken the price back to the Asian-Pacific session lows near 1.3333. That level also corresponds with the 38.2% retracement of the trend move higher from yesterday’s low.
After a trend-like move like we saw yesterday, a correction needs to get below 38.2% retracement to confirm that sellers are taking back the minimum retracement control. Absent that, the buyers are still winning (and the sellers are not).
So watch 1.3333 for bias control in the short term. Staying above is more bullish. Move below is more bearish.
This article was written by Greg Michalowski at www.forexlive.com. Source