Move up from May 11 low nearly reached
The USDCAD based on Monday, May 11 at 1.3899 and moved to a week high on Thursday May 14 at 1.41399. The price high on Friday stalled near a lower swing area. The dollar selling yesterday raced below the 100 hour MA, the 200 hour MA and 50% retracement, and the rout was on.
Today, the price corrected to a lower swing area at the 1.39645-719, found sellers, and pushed lower. We sit just a handful of pips from that March 11 low at 1.3899. The lap up and down is nearly complete.
Traders today will use that level as a risk/bias defining level. Dip buyers have a low risk trading opportunity for a rebound. If the price breaks below, I would not mess with being long. The sellers remain in control.
On a bounce higher, minor targets at 1.3923, 1.3945 and then the swing area at 1.39645-719 will be eyed.
On a break lower, the next key target come at the April lows of 1.3849 and 1.3854 (from April 13 – see daily chart below). That area is also a key spot for bulls and bears expectations from a technical perspective.