TECHNICAL ANALYSIS

USDCAD retreats after failure above 61.8%


See some apprehension on the rise

The USDCAD posted an upward trend today, with gains starting during the Asian session after the price exceeded its 100 hour MA (blue line).

The momentum accelerated when the commodity currencies were all hit. The movement initially stalled around 200 hours MA (green line at 1.4003 currently), but was then able to extend higher. The 61.8% retracement at 1.40352 has become the next hurdle. The 1st test blocked the rally. After rising to the 1.4000 level, the price was able to exceed the retracement level of 61.8% to reach a high of 1.40477. However, there was a return below the retracement line.

See some apprehension on the rise

Will a failure above 61.8% cause a delay compared to the sale?

The week is getting closer to the end and to Europe (the UK on Monday holidays as the United States does), so anything can happen. However, staying below 61.8% should see more downside polls. That said, the move above the 1.4000 level, the 50% retracement, the 200-hour moving average and the swing zone were a major break. As a result, I expect that any corrective move downward, buyers will rely on this 1.4000 area.

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