The USDCAD from April to July was confined in an up-and-down trading range between 1.3586 and 1.3803. Finally, in July, the pair broke higher reaching a level of 1.39458 on August 5.
However, since then the pair as moved back into the up-and-down consolidation range, and then below the low of that range last week on the back of the Powell speech and overall USD selling (below 1.3586).
That momentum the price to a low near 1.35000 on Friday. On Monday, we saw an extension lower with the price reaching 1.34625.. That level was within a swing area between 1.3455 and 1.3477. There has been some stall over the last eight or so hours of trading. The current price trades at 1.3480.
Can the buyers hold support against the 1.3455 level? If so, traders will look toward 1.3526 – 1.3543 as the upside target.
Conversely, move below 1.3555, and sellers remain in firm control with more downside runway to explore.
This article was written by Greg Michalowski at www.forexlive.com. Source