Trades to the highest level since May 13
The USDCAD moved up to its highest level since May 13 today. The high price reached 1.2198 – just short of the natural resistance at 1.2200. At the high, the pair was also in a swing high area between 1.21927 and 1.22027 that extended back to early May (see green numbered circles). The inability to extend above that area give sellers a reason to lean.
The price decline has now moved below the 50% retracement of the move down from the May high at 1.21785. That level is also near the high price from Friday’s trade at 1.21765. Stay below the 50% level would give sellers more confidence at the intraday high has been reached.
On a more bullish side, the price lows yesterday and again today did fall below a swing area between 1.2132 and 1.2144, but each decline failed. The price is also stayed away from its rising 100 hour moving average.