USDCAD fell last week below a major swing zone on the daily chart (see chart below). That area came between 1.3207 and 1.32299. However, the momentum could not be sustained, and in today’s trading, the price moved higher and higher from the top of the swing zone.
Moving to the hourly chart, the price also moved above the 100 hourly moving average at 1.32422. This level will now be close support. Over the last 7 trading days or so, the price has moved above this 100 hourly moving average on a number of occasions but stopped before the 200 hourly moving average fell. This 200 hourly moving average currently comes in at 1.32913 and represents the next major target. If the buyers are to be in control, getting in and staying above the moving average is essential. The USDCAD rate has not traded above the 200-hour moving average since June 1.
Support is now found at the 100 hourly moving average at 1.3242 and the swing high at 1.32299. On the upside, the low from last Wednesday at 1.32871 and the 200 hourly moving average at 1.32913 are bullish targets.
USDCAD fell below a major swing zone, but stalled and rebounded
