Test weeks midpoint target/100 hour MA
The USDCAD has soared after the miss in the retail sales and the CPI data out of Canada.
The price this week fell below a floor at the 1.3128-46 area (lots of swing lows) on Wednesday. Higher oil prices kept the pressure on the pair yesterday. Support near the 100 day MA at the 1.29919 stalled the fall (the low yesterday reached 1.29997).
The price surge on the data has taken the price back toward that old floor level. Also in the area is the 50% of the weeks range at 1.3121, the 100 hour MA at the 1.3136 and the 200 hour MA at 1.31547. We are seeing sellers leaning against the level on the first look.
If the buyers are to remain in control, I would expect a correction to find support at the 1.3087-91 area (see chart below). That is where the 38.2% of the surge higher is found and prior swing highs (see blue numbered circles in the chart below). It is a risk defining level for longs.
