The USDCAD has been running higher over the last week with the pair raising up near 300 pips in one week of trading. That’s a big move in a short period of time as the market trends to the upside. For a fundamental view of the price action, see Adam’s post here. Tomorrow the Canadian employment report will be a key release. For the trend to continue, traders will be looking for weakness in that report.
Technically, the price has moved up to a swing area between 1.3753 and 1.3765. The high price has extended to 1.37677 and backed off. This area could be out area of stall, but sellers have to also show they can take more control.
Getting below the low of the swing area at 1.3753 and staying below is step one.
Another step would be if the price on the 5-minute chart can get and stay below its rising 100 bar moving average. That moving average currently comes in at 1.3736. Get and stay below that level and then the rising 200 bar moving average at 1.3722 would give the sellers more confidence that the correction is progressing to the downside (blue and green lines on the chart below).