USDCAD makes a break higher and moves back above swing area/100 bar MA

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USDCAD: The pair is breaking higher, reclaiming both the 100-bar MA on the 4-hour chart at 1.4279 and a key swing area between 1.4268–1.4278. It has also moved back inside the Red Box range (1.4268–1.4466), which previously contained price swings through December and January.

As long as USDCAD holds above the Red Box low, buyers remain in control in the short term. The next upside target is the 200-bar MA on the 4-hour chart at 1.4338.

From a technical standpoint, only a move back below the swing area/Red Box low would negate the bullish breakout and shift momentum back to sellers. Until then, further upside remains in play.

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This article was written by Greg Michalowski at www.forexlive.com.