The US dollar has risen against the Canadian dollar over the past week, with the pair rising nearly 300 pips in one week of trading. This is a big move in a short period of time as the market is heading towards the upside. For a basic look at price action, see Adam’s post here. The Canadian Employment Report will be the main release tomorrow. For this trend to continue, traders will look for weakness in this report.
Technically, the price rose to a swing zone between 1.3753 and 1.3765. The high price extended to 1.37677 and retreated. This area can be outside the stall zone, but sellers must also demonstrate greater control.
Getting below the bottom of the swing zone at 1.3753 and staying below it is the first step.
Another move would be if the price on the 5-minute chart manages to stay below the bullish 100-bar moving average. This moving average currently stands at 1.3736. Reaching and staying below this level and then rising to the 200 bar SMA at 1.3722 will give sellers more confidence that the correction is progressing to the downside (blue and green lines on the chart below).
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