December 8, 2022

Forex Solution

Learn To Trade Forex

USDCAD falls to test swing area. Stalls at the support target so far

1 min read

Swing area comes in at 1.24873 to 1.24921

Swing area comes in at 1.24873 to 1.24921_
The “as expected” CPI data sent the dollar lower.  The USDCAD was not left behind.

Looking at the hourly chart above, the pair tumbled back below its 200 hour moving average 1.25226 and moved to a low of 1.24888. That low stalled within a swing area between 1.24873 and 1.24921 (see red numbered circles in the chart above and yellow area).  The area was defined by swing highs and swing lows going back to July 29.  

Buyers leaned against the swing area and have pushed the price modestly higher, but still below its 200 hour MA above. 

The fall below the moving averages, tilts bias back to the downside as the ups and downs in the pair continue.  However, holding the swing area gives the buyers some skin in the trading game today.  

Stay above the swing area below and moved back above the 200 hour moving average and 100 hour moving average at 1.25226 and 1.25387 respectively would tilt the bias back higher.  

Move below the swing area and the sellers add to their bias control today with the swing low from last Thursday at 1.24739 and the low from last week at 1.2452 as the next downside targets.
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