USDCAD corrects lower today after failing on a key break earlier today. What next?

The USDCAD moved higher this week, helped by a sharp rise yesterday after stronger than expected US CPI data and weekly initial and continuing claims. The price extended above a number of moving averages with the 100-day moving average at 1.3527 the final in the MA series.

The momentum continued today with the price extending above the high of a swing area home to a number of different swing highs and lows going back to January. That area comes between 1.3526 and 1.35428. The high price today extended to 1.3549, but could not sustain momentum.

In the Europe and early US session, the price has since rotated back down and back below the swing area and the 100-day moving average at 1.3527.

What next?

The 100-day moving average at 1.3527 and low of the swing area at the same level (well 1.3526), is now close resistance and a key barometer for both buyers and sellers. Stay below and we likely see a rotation back down toward the lower moving averages including the 200 day moving average 1.3480. Conversely, move back above and the price is back in the swing area which peaks at 1.35428.

In this video it’s all outlined and acts as its the roadmap for the technical picture

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