USDCAD bounces higher today but finds sellers near swing area resistance. What next?

The USDCAD yesterday moved higher and moved into a swing area on the 4-hour chart between 1.36049 and 1.36269. In between sits the 61.8% retracement of the move down from the November 2023 high to the December 2023 low at 1.3623. That move to the upside failed and the price rotated back lower into the close.

In trading today, buyers returned as traders position for the FOMC rate decision at 2 PM ET along with the Fed chair press conference at 2:30 PM. However, the high price stalled just ahead of the low of the aforementioned swing area at 1.36049, and the price backed off. The current price trades at 1.3577.

What next?

Resistances is pretty solid between the 1.36049 and 1.36269 level. On a more hawkish Fed, getting and staying above that level is the next target.

On the downside, support comes between 1.3518 up to 1.35428. The 100-day moving average is within that area at 1.35186. The 100 bar moving average on the 4-hour chart comes in at 1.3531. The 50% midpoint is at 1.35378.

Breaking below that level would likely open the door for further selling with the 200 day moving out of 1.3483 as the next major target as more bullish bias seen over the last few weeks is on unwound.

Watch the video above for more details.

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