The USDCAD experienced an upward move yesterday, surpassing a significant swing area range spanning from 1.3687 to 1.3700. This ascent led the price into another key swing area, ranging between 1.3736 and 1.37433. Within this region, traders have engaged in a tug-of-war, resulting in a consolidating pattern with a recent low at 1.3714.
Currently, there’s a battle between buyers and sellers centered around the support and resistance within the swing areas (see red and blue numbered circles on the chart below) .
In the event of an upward breakout, traders are eyeing a potential move towards the October high at 1.37848.
Conversely, if there’s a dip, I anticipate buyers stepping in near the previously mentioned lower swing area (indicated by the red numbered circles), with protective stops positioned below 1.3687. A breach of this level could prompt traders to refocus on the 100-hour moving average at 1.3659 (depicted as the blue line in the chart below).
USDCAD trades between swing areas