USDCAD trades between swing areas/technical levels

Technical Analysis

50% retracement above.  100/200 hour MAs below

The USDCAD is trading between support defined by the 100/200 hour MA below and the 50% retracement above (resistance). 

The support comes in against the 100/200 hour MAs.  They currently come in at 1.2720 to 1.27256. Also near that level is a swing area between 1.2722 and 1.2733. The low today reached 1.27316 above the MAs, and just into the swing area.

The resistance today stalled just ahead of the 50% retracement of the range since the high on December 21. That level comes in at 1.27925. The high price in the Asian session reached 1.27904.  Also around the 50% are swing highs from January 4, January 5 between 1.27888 and 1.27970.  

The current price is trading between the two extremes at 1.2770.   

Buyers and sellers are battling it out.  You can flip a coin as to who has more control. Perhaps a close intraday support might be eyed at the 38.2% at 1.2754. Stay above, tilts the bias a little more to the upside.

Ultimately, traders will be looking for a break (higher or lower) with momentum on the break.  Until then, the waffle and battle continues.  

For bank trade ideas, check out eFX Plus

Articles You May Like

Tencent reports profit beat on games growth, touts AI benefits
Coinbase launches Stand With Crypto advocacy group in Australia
Forexlive Americas FX news wrap 13 Nov: US CPI comes out as expected. USD continues rise
Gold sellers keep selling, but approaching a key target
Canadian Dollar sheds weight, flubbing technical recovery after jobs data misses the mark

Leave a Reply

Your email address will not be published. Required fields are marked *