My look at the USDCAD yesterday, outlined the buyers taking control, but also highlighted a key cluster of resistance (you can also watch the video there).
More specifically, I wrote:
The USDCAD buyers are making a play with a move above the 38.2% retracement of move down from the September high at 1.34987. The price is also trying to extend above a swing area between 1.3488 and 1.35024. Getting and staying above that area would have traders looking toward the high price from last Thursday at 1.35229 and then the 200 and 100 bar moving averages on the 4-hour chart and the 50% midpoint of the same move down. That cluster of resistance comes between 1.3536 and 1.3543.
The price since then has waffled up and down on the 4-hour chart below, but buyers did take more control in the London morning session, and made a push toward the 50% midpoint at 1.3538 along with the 100 and 200 bar moving averages. The high price reached 1.3537 just below the 50% midpoint (at 1.3538), and the converged 100 and 200 bar moving averages on the 4-hour chart (at 1.3539). Sellers leaned against the cluster of resistance and have since moved the price back down.
What next?
The rotation lower has taken the price back down to the aforementioned 38.2% retracement at 1.24987, and there has been a stall at that level.
So buyers and sellers are battling it out between retracement levels with the 38.2% retracement holding support at 1.34987, and the 50% retracement at 1.3538.
USDCAD finds sellers ag. key MAs and 50% retracement targets
