The USDCAD has raced higher in trading today and in the process really had limited corrective price action. There was a brief consolidation after the better-than-expected GDP, but it has been racing back to the upside over the last few hours. However, the last 20 minutes have seen a rotation to the downside. The buyers are taking a breath.
What next?
When the market trends, I like to watch the 38.2% – 50% correction zone of the last trend leg. That leg started at 1.3536 and extended up to 1.3645. The 38.2% retracement comes in at 1.36037 while the 50% retracement comes in at 1.35909. That area between 1.35909 to 1.36037 is the correction zone. If the price can hold that area, the buyers remain in firm control.
This article was originally published by Forexlive.com. Read the original article here.