The 1.2908-36 area is home to lots of swing levels
The USDCAD returned to the swing high area in the 1.2908-36 area on the daily chart below.
There have been a number of swing highs in that area going back to October 2017. There have been breaks in March and again this month, but those breaks failed. If the price is to break out, getting above that ceiling area (see yellow area) and staying above would be needed.
Drilling to the hourly chart, the swing highs most recently are between 1.2908 to 1.2924. A move above should be enough to get through the older highs from the daily at 1.2936. However today (and yesterday too), the market is not ready yet to make the break. The high yesterday reached 1.29146. The high today reached 1.29199.
On the downside, the 100 and 200 hour MAs were base levels yesterday and today. Those MAs come in at 1.2829 and 1.2841 respectively (and moving higher). The 50% of the month's trading range is at 1.28608. Those are support targets on more selling.
For now, the sellers are continuing to lean against the upper extreme with stops likely on a break above.
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