The USD CAD is trading better at the midsession. Yesterday thiscurrency pair confirmed the August 4th closing price reversal bottombut was unable to follow-through to the upside. Now that this markethas survived a test ofthis week’s low at 1.0630, it appears poised to move higher.
The USD CAD is trading better at the midsession. Yesterday this currency pair confirmed the August 4th closing price reversal bottom but was unable to follow-through to the upside. Now that this market has survived a test of this week’s low at 1.0630, it appears poised to move higher.
Weaker equity and commodity prices are the fundamental catalysts for today’s strength, but technical factors are also playing an important role.
Technically this market is having trouble with the retracement area of the 1.0933 to 1.0630 range. This retracement zone is at 1.0782 to 1.0817. Once this hurdle is overcome then look for this pair to challenge the swing top at 1.0933. A break through this level will turn the main trend up on the daily chart.
The second range to consider is 1.1724 to 1.0630. Once this market breaks through 1.0933 then look for an acceleration to the upside which could take it to a key 50% price at 1.1177.