The USDCAD is running to the upside in the early North American session to start the week, and in the process is ticking above the 200 day moving average 1.3601. Getting and staying above that moving average will be a shift more in favor of the buyers.
For the pair, the price in September based against a swing area between 1.3412 and 1.3418. The move higher off of that key support extended above the broken 61.8% retracement of the move up from the end of December low at 1.34704 and based against that level at session lows last week before continuing the move to the upside.
The basing last Monday was a key tell for buyers and led to increased upside momentum into Friday’s jobs report.
The move on Friday after the stronger jobs report, took the price into a swing area between 1.3588 and 1.3609. That area is now support. Moving back below 1.3588 would likely disappoint the buyers. Staying above is more bullish.
On a move above the 200-day moving average and the high of the swing area at 1.36094, would have traders next looking toward the 100 day moving average (blue line on chart below) and broken 38.2% retracement at 1.36520.
This article was written by Greg Michalowski at www.forexlive.com.
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