The USDCAD move down to test a key support area defined by the 38.2% retracement of the move up from the August low at 1.34995. Also in that area is swing lows and highs going back to September 22 (see red numbered circles). That area comes between 1.3500 and 1.35103. The low price dipped to 1.34952 before bouncing modestly higher. The current price trades at 1.3509.
USDCAD tests a key support area
The level is a key barometer for buyers and sellers going forward. A move below and stay below with momentum – would open the door for further selling momentum.
Hold the area, and a move back toward the higher swing area between 1.3543 to 1.3562 would be targeted. A downward sloping channel trend line (which has seen price spikes back above it on the bouncs this week) cuts across in that area (near 1.3560 currently and moving lower). Move above it and stay above, would give the buyers more hope with the 200 bar MA on the 4-hou at 1.35969 as the next target on a break higher.