USDCAD running higher in trading today
The USDCAD is trending higher in trading today with little in the way of corrections a long way.
The pair has been stepping higher since the first few hours of trading. The low for the day came in at 1.26354. The high just reached 1.27566. The low to high trading range of about 121 pips is well above the 92 pip average over the last 22 trading days.
Looking at the hourly chart, the pair started the run to the upside on the break of swing low area between 1.2655 1.2664. Shortly after that April through a downward sloping trendline. More recently, the price extended above the 30.2% retracement 1.27038, the 200 hour moving average 1.27066, the 100 hour moving average 1.27148, the 50% retracement 1.27288 and the 61.8% retracement 1.27538.
For the week, the pair moved down to test he low from earlier in January at 1.26292 and reached a new low yesterday at 1.2623. That break took the price to the lowest level since April 20, 2018. However when the break to the new multi year low could not sustain additional downside momentum, the price started it rebound higher. Today, the buying has been relentless to the upside.
Looking at the daily chart, the price has moved above an old swing area going all back to May 2018 between 1.2725 and 1.2742. That area should be eyed as a support area going forward. The 50% retracement of the week's trading range at 1.27288 is also in that area.