The USDCAD moved higher in the Asian-Pacific session today and in the process got within 3 pips of the 2024 high at 1.4177 and the highest level going back to May 2020. Finding sellers against that level increases that level importance today and going forward. Getting above that level might be more difficult with the double-top now.
Having said that, the move lower today extended to a swing area support area between 1.40889 and 1.41045. The low price reached 1.4092 which was also right at the 50% midpoint of the move up from last Thursday's low to the high price seen today.
Stalling within that swing area and at the 50% keeps the buyers still in full control. It would take a move below that swing area to add to the sellers confidence followed by a break below the 100 and 200 hour moving averages at 1.4078 and 1.4051 respectively.
Absent that, and the buyers still hold the control.
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USDCAD Technical Analysis
Market Summary
The USDCAD pair rose during the Asian-Pacific session, nearing the 2024 high of 1.4177, a level not seen since May 2020. Sellers emerged at this level, increasing its importance. A double-top formation may make surpassing this level challenging.
Key Technical Levels
2024 High: 1.4177
Double-Top Resistance: 1.4177
Swing Area Support: 1.40889-1.41045
50% Midpoint Retracement: 1.4092
Downside targets on more downside
100-hour MA: 1.4078
200-hour MA: 1.4051
Market Sentiment
Buyer Control: Buyers remain in control, with the pair stalling within the swing area support and at the 50% midpoint retracement.
Seller Confidence: Sellers need a move below the swing area support to gain confidence.
Trade Implications
Buyers: Need to maintain prices above the swing area support and target a break above the double-top resistance.
Sellers: Will attempt to defend the double-top resistance and push prices below the swing area support to gain control.
This article was written by Greg Michalowski at
www.forexlive.com.
