IN the video yesterday, I spoke to the 1.4000 level (see: USD Technicals: The USDCAD has set a floor this eek at 1.4000. That is good to know).
Since then, the price did move below that floor level (yesterday in the NA afternoon), and found selling pressure. However, the low price yesterday fell short of the next target at the 61.8% retracement of the move up from the end of October low at 1.39837, and the price started a rebound back to the upside.
In trading today, the price in the Asian-Pacific session extended back above the 50% retracement level at 1.40135, but only by a few pips before rotating back lower. The next subsequent high did find willing sellers against the 50% retracement level pushing the price back through the 1.4000 level.
This time the subsequent move lower, did extend to the 61.8% retracement at 1.39837. The low price reached 1.39840 as buyers leaned against the target.
The buyers then pushed the price back to the upside and is currently trading back above the 1.4000 level.
If I were to define the key borderlines (resistance and support targets in the up and down market) resistance would be focused at the 50% midpoint 1.40135 followed by the falling 100 hour moving average at 1.40208.
Conversely, on the downside, break back below the 1.4000 level would have traders looking toward the 61.8% retracement 1.39837
Summary of Key Technical Levels
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Support:
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1.4000 – Major floor and pivot area
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1.39837 – 61.8% retracement (key downside target)
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Resistance:
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1.40135 – 50% midpoint
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1.40208 – Falling 100-hour moving average (key topside hurdle)
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This article was written by Greg Michalowski at investinglive.com.