Return above the oscillation zone between 1.2623 and 1.26294
USDCAD moved to a new session high after new lows dating back to April 2018 have exhausted.
Looking at the hourly chart, today’s low price came within 5 pips of a lower trendline connecting the January 8th and January 14th lows. This level came to 1.2582. Today’s low price hits 1.25872 and rebounds quickly.
The price increase has now returned above an oscillating area between 1.2623 and 1.26294. The current price is trading at 1.26424. Stay above 1.2623 (this was last week’s trading low) and buyers may feel more comfortable that a low MAY be in place. Move underneath and that confidence fades.
On the top there is another area of oscillation between 1.2655 and 1.2664. The 38.2% retracement of the move down from this week’s high comes to 1.26679. Overtaking each is the minimum for buyers to regain more control.