The 61.8% examined at 1.2831

The USDCAD has trended increased in buying and selling at this time and within the course of has moved as much as check it is 61.8% retracement at 1.2831. The excessive worth reached 1.28346 – simply above that degree – and has backed off.   

The low to excessive buying and selling vary is as much as 141 pips. That’s properly above the 22 day common (round a month of buying and selling) of 91 pips.  

The run to the upside at this time began close to the 100 hour MA (blue line) at 1.27013 at the moment, and cracked the 200 hour MA for the primary time since December 29 a number of hours later (inexperienced line at 1.27303 at the moment).  

The subsequent main goal above the 200 hour transferring common was the 50% retracement of the transfer down from the December 21 excessive at 1.27925. That may be a shut threat degree on the hourly chart now. Keep above is extra bullish. 

In a pattern day, it is very important take a look at the 5-minute chart for pattern clues.

Trying on the chart beneath, there have been three legs increased to this point. 

The primary pattern step increased took the value from 1.26812 to 1.27672. The 38.2% of that transfer got here in at 1.27329. The corrective low stalled forward of that at 1.27403. The consumers have been nonetheless in management.

The 2nd leg increased went from 1.27403 to 1.27844. The correction of that transfer additionally stalled close to the 38.2% at 1.27672. The value based mostly and began the third leg increased. 

The third leg has seen the value transfer up from 1.27672 to 1.28346. The 38.2 to 50% of that particular person leg increased is available in at 1.2800 to 1.28089. If the value correction off the excessive can keep above that space, the bullish pattern day stays intact. We may see new highs. If the value strikes beneath that space, the pattern momentum is a bit weaker. We may see extra balanced up and down buying and selling.  

With the value testing the 61.8% retracement on the hourly chart on the excessive, there’s a possible that the pattern may be getting into a consolidation section.

 

For now nevertheless, the consumers stay in management, with a cautious eye on the potential for a extra corrective/consolidation section.