USDCAD bounces higher after testing key technical support. Can the buyers keep pushing?

The USDCAD traded to the lowest level since June 3 earlier today, and in doing so tested the lower basement area down to 1.35972. The 200-day moving years was just below that level at 1.35953. The low price today reached 1.3601 as buyers /profit takers leaned against the swing area.

The combination of the US and Canadian jobs data) higher, and in doing so away from the aforementioned swing area. The price also moved above its 100-day moving average of 1.3634. The high price reached 1.36523.

The buyers are making a play. The question is can they keep the momentum going?

Close support is the 100-day moving average. More conservative support would be against the swing area between 1.3597 and 1.36154.

What the price action also did was solidify the swing area below. With the 200 day MA moving closer to the low of that swing area, it increases the areas importance as well. Those nuggets are important tells for both buyers and sellers going forward.

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