Traders play the support/resistance levels
In an earlier post, I commented on the USDCAD move higher and how a key cluster of resistance was finding some sellers. I also drilled to the 5 minute chat and outlined the 38.2% retracement at 1.39728.
Well, the sellers did lean, the price moved lower and retested the 38.2% area. Support held again. Buyers leaned and pushed the price higher….
The price move higher has returned to retest for the 3rd time, the MAs between 1.4009 and 1.40174. Yes… seller have leaned again.
The ping pong continues for the pair with buyers and sellers content to lean and hope for a rotation. At some point, there will be a break, but for now, a table tennis trade is giving both the dip buyers and rally sellers happy.