The USDCAD has traded down and back up today. The low price earliers today, moved below the 200-day MA at 1.3589 which was a tilt back to the downside after trading above that level yesterday. However, the price moved back higher in the European session and moved higher after the CPI data today.
That move higher took the price to the highest level since August 20, but remained short of the 38.2% of the trend move lower in August. That retracement level comes in at 1.3633. Getting to and through the 38.2% is needed to give the buyers more control after the trend move lower. So far, we may be stepping higher, but the upside is limited.
So watch the 1.3633 level on the topside. On the downside, the low of a swing area at 1.3597 and the 200 day MA at 1.3589 remain as support. Move below those levels, and sellers are back in firm control.
This article was written by Greg Michalowski at www.forexlive.com.
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