Up about 80 pips on more dovish/cautionary comments
The USDCAD has moved higher after more cautionary comments from the BOC.
Technically, the price has moved above the topside trend line (at 1.2878 - support now) from trading this week and looks to target the low from Monday at 1.2904 (stalled so far against the level).
Should the support below hold (at 1.2878), then a move above that 1.2904 level will have traders targeting some pretty health resistance against the 100 day MA, the 100 bar MA on the 4 hour chart, and the 38.2% of the move down from last weeks highs (see highlighted area in the chart above). All that comes in at the 1.2940-45 area.
The 100 hour MA is also on it's way to the area as well (currently at 1.29595).
The 1.2940-45 area should be an area for patient sellers to stick a toe in the water.
Looking at the 5 minute chart below, more aggressive buyers may look to define risk/enter against the 1.2885 area. This was a double bottom in trading yesterday before the plunge lower on the weak US data.
