USDCAD bounces higher today but only to the 50% midpoint of the 2-month trading range

Technical Analysis

As the clock ticks to the end of the trading week, the USDCAD has moved higher after reaching a new low for the week earlier in the trading day.

On the way to the low, the price did move back below its 200 bar moving average on the 4-hour chart at 1.3687. It also fell below the broken 38.2% retracement of the trading range since mid April (two month trading range). The level also is at 1.3687. The failure on the break of both those levels disappointed that the sellers and has led to a bounce back rally in the North American session.

That move to the upside has taken the price back up to test the 50% midpoint of the two-month trading range at 1.3717. So far the price has stalled against that the level.

The move back toward the 50% midpoint just that neither buyers or sellers are willing to take control.

Fundamentally, the Bank of Canada did cut rates at their last interest-rate decision becoming one of the first G-7 countries to do so. However, after peaking within a swing area between 1.3784 1.3803, the price has been up and down over the last seven or so trading days. Moreover, the current price is below the 50% of the two-month trading range. On the positive side it is above the 200 bar moving average on the 4-hour chart at 1.3687, and is trading above and below the 100-bar moving average on the 4-hour chart of 1.37079.

So buyers and sellers seem to be pointing into next week where perhaps there is more of a shift in the technical bias one way or the other.

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