USDCAD technicals: The USDCAD stretches to new highs for the week

The USDCAD is pushing larger, coming into a key swing space between 1.3891 and 1.3904. A break above this zone would open the door towards the 38.2% retracement of the decline from the March Four excessive at 1.39229—a important stage, since reclaiming the 38.2% retracement is the minimal threshold for patrons to show they’re regaining management after a powerful downtrend. The worth decline from the March Four excessive was development like.

Current worth motion has been constructive. The pair moved again above each the 100- and 200-bar shifting averages on the Four-hour chart (1.37966 and 1.3742), in addition to the 100-day shifting common at 1.3769. On Tuesday, it additionally cleared a previous swing space between 1.3812 and 1.38215, additional confirming upside momentum.

On the hourly chart, Monday’s dip to the weeks lows took the worth briefly under the 100-hour shifting common (1.3838) however that break rapidly failed, giving patrons confidence to push larger. The pair then broke above the August 1 excessive at 1.38785, with the rally persevering with into in the present day.

For intraday merchants, shut threat sits at 1.3875 (the August 1 excessive), whereas extra conservative threat is in opposition to the rising 100-hour shifting common at 1.3838. The patrons proceed to step larger, and momentum stays with them so long as these assist ranges maintain.

This text was written by Emma Wang at investinglive.com.