Rise of May 11 trough almost reached
The USDCAD is based on Monday May 11 at 1.3899 and hit a week high on Thursday May 14 at 1.41399. On Friday, the high price stalled near a weaker swing area. The dollar sold yesterday fell below the 100-hour MA, the 200-hour MA and the 50% retracement, and the rout was underway.
Today, the price corrected to a weaker swing area at 1.39645-719, found sellers and pushed lower. We sit just a handful of pips from the March 11 low at 1.3899. The turn from top to bottom is almost finished.
Today, traders will use this level as the risk / bias definition level. Dip buyers have a low risk trading opportunity for a rebound. If the price falls below, I wouldn’t want to be long. Sellers keep control.
On a higher rebound, minor targets at 1.3923, 1.3945 and then the swing zone at 1.39645-719 will be observed.
On a lower breakout, the next key target is the April lows of 1.3849 and 1.3854 (from April 13 – see daily chart below). This area is also a key place for bulls and carries expectations from a technical point of view.