100 day moving average of 1.2425. A swing area at 1.2434 to 1.2442. 50% retracement 1.24432.
The USDCAD is stretching a higher and trades at the highest level since April 26.
In the process the pair’s prices moving closer to its falling 100 day moving average at 1.24253. The price has not traded above its 100 day moving average since November 2020. The price has not closed above its 100 day moving average since May 2020.
Also above is a swing area between 1.2434 and 1.2442. The 50% midpoint of the range for 2021 is just above that level at 1.24432.
So call the area between 1.24253 and 1.24432 a cluster of resistance target for the USDCAD.
When there is a number of technical levels in a relatively narrow trading range AND there is a test of a key moving average like the 100 day moving average which has not been breached in a while, traders will look to lean against the area, with stops on a break.
The sellers may just be in for a quick low risk trade. So it may not mean that the price rise is over. There should the support near 1.23837 on a dip.
However, it could slow a rise “just because” risk is defined and limited. The aware