USDCAD breaks out of the up and down range today
The USDCAD experienced considerable volatility during the first four days of the trading week, with the price action reflecting significant fluctuations. The red box in the chart above highlights this week’s trading range, characterized by sharp ups and downs over the first 4 1/2 days. Temporary breaks to the downside occurred on Tuesday and Thursday, dipping below the swing area between 1.36504 and 1.3665 (indicated by blue numbered circles). However, these declines were short-lived and followed by swift snapback rebounds to the upper extremes.
In today’s trading session, the price broke to the upside for the first time this week, surpassing the 50% midpoint of the decline from the March 10 high. Additionally, a new swing area emerged near the 50% level, ranging between 1.3735 and 1.3745 (marked by green numbered circles in the chart above). This former resistance has now become a support level. Staying above 1.3735 – 1.3745 signals a more bullish sentiment.
On the topside, traders should keep an eye on the topside swing area between 1.38068 and 1.38164 (denoted by red numbered circles in the chart above) as the market continues to navigate this week’s volatility. The high price today reached 1.38039 about two – three pips away from the low of that swing area.
Ultimately if the price is going higher, a move above that level would have traders looking toward the extreme from March which reached 1.38614.
On the downside the support will be against the 50% retracement level at 137457 and the swing area down to 1.37359.