Home / Forex Treiding / USDCAD trading up and down today, but remains in the upper extreme area

USDCAD trading up and down today, but remains in the upper extreme area

  • share

USDCAD  buyers taking control

The USDCAD has stayed mostly in a 1.3231 to 1.3304 area for 13 days. This week (and last Friday), the pair extended below the lower extreme to a low of 1.32052.  The move lower on Tuesday into yesterday spent more time below the level, but it failed in the early European session and the price started to extend higher and higher.

Overall the range yesterday was 120 pips. That was higher than the entire range for the previious 13 days (104 pip range over the 14 day period).  The move higher took the price above the upper extreme at 1.3304 (and 1.3309).  
Today, the price has made new highs and moved down on the day too at one point, BUT the price did hold support near the 1.3309 level (and above 1.33039).  Buyers leaned against support.  
Like when the price fell below the lower extreme at 1.3231-345, and failed. The buyers above the upside extreme keeps the buyers in control, as long as the price can stay above that extreme area.  
We currently trade at 1.3327, between the floor below and the high today, but buyers are still in control. 
Taking a broader look at the daily chart, the 61.8% of the move down from end of May high comes in at 1.33544.  That is a target on more upside momentum.  Today, the high did test August highs and backed off. So there is some congestion ahead for the pair on the topside. 
The bullish from the daily chart today is the price has extended above a broken trend line at the 1.3311 level. The low today did move briefly below that trend line to 1.33085, but rebounded. The trend line, coupled with the support from the hourly at 1.33039 to 1.33093 make that area more important. Stay above is more bullish.      


About SkyNET

Leave a Reply

Your email address will not be published.