Price moves above swing area
The USDCAD has stretched to a new high and in the process has moved above the 1.25915 to 1.26038 swing area (see red numbered circles on the 4-hour chart), and the 50% of the move down from the 2021 high at 1.26177. The high reached 1.2622. The current price is at 1.2615.
Traders will be watching the high of the swing area for support at 1.26038. Stay above could see and push back through the 50% retracement level.
Move below, and then through the low of the swing area, would likely lead to the longs giving up, and selling out.
This article was originally published by Forexlive.com. Read the original article here.