BOC Lane's comments give cause for pause
The comments from BOC's Lane that the BOC is paying close attention to the impact of rates and the higher CAD, was enough to give the CAD a push higher. The high corrective level post the BOC high on September 6th at 1.2244 was broken and the price raced higher.
Stretching the Fibo up to the high from August 31, the price break sent the price above the 38.2% at 1.22909 and then the 100 bar MA on the 4-hour at 1.23185. The swing lows at the 1.2339 is the next target followed by the 50% at 1.2361 (see chart above).
In fact the 100 bar MA was just broken and the price just tested the swing lows from Sept 1 and Sept 5th at 1.2339. Risk will now be eyed at the 100 BAR MA at 1.23185 and on the wide, down to the 38.2% at 1.22909. Stay above and there could be a further run higher. Move below, and traders will question the break.
