The USDCAD is trading/trending higher today as the details of the BOC mandates the are being released. The news is in line with sources reports from last week. They new high was just reached at 1.27884
The pair has trended higher since earlier weakness in the early Asian session found support against the 1.2700 level. The low price for the day reach 1.2704 before starting its rotation and trend move to the upside.
In the process, the pair has been able to extend above the 200 hour moving average 1.2739 and ultimately the 61.8% retracement of the move down from the December 3 high. Those levels are risk defining levels for traders. Stay above is more bullish.
The next target area comes in near the 1.2800 level (see red numbered circles). Above that, and swing highs between 1.2828 to 1.2836 would be eyed (green numbered circles) followed by the high from December 3 at 1.28533.
Drilling to the five minute chart, the price moved lower early in the day and below both the 100 and 200 bar moving averages (blue and green lines). Then the prices started to based against the near converged moving averages and move higher. The consolidation around the 200 hour moving average (currently at 1.2739), lasted for about an hour before the price pushed to the upside.
There has been little in the way of corrective moves since the low in the Asian session. The last leg to the upside has the 38.2 -50% retracement area between 1.2767 to 1.27725 as upside targets. That is a short-term barometer for the trend market. Stay above and the trend remains firmly in place.
Also of interest would be the rising 100 bar moving average currently at 1.27534 (blue line on the chart below). It would take a move below that moving average to give sellers some additional hope of further downside corrective action.
For now, however, the buyers in firm control is they trend market higher.
