The low for the day finds buyers against lower channel trend line
The USDCAD is bouncing and in the process has moved back above the swing low from last week at 1.20447. Earlier today, the price cracked below that level and after creating a mini ceiling against the area, moved lower. The low for the day did find support buyers against a channel trend line (see red numbered circles).
The move back above the 1.20447 level, gives those dip buyers some comfort. The next key target area above comes in between 1.2078 and 1.20832 (see blue numbered circles). That area is home to swing levels from May 10, May 11, May 12, and May 14. Yesterday, the price cracked below that area and stayed below.
Also near that area is the 38.2% retracement of the last move down from last week’s high at 1.20850, and the upper channel trendline which is sloping down toward that 1.20850 level as well (see green numbered circles).