USDCAD rallied above the 200-day SMA (simple moving average) and previous swing high level around the 0.9970 – 0.9980 area on Wednesday – with a subsequent break above parity seen on Thursday.
Friday had the Loonie move as high as 1.0098 before retracing just shy of 61.8% of the daily range and back to the 1.0050 area for the weekly close.
Guest post by Nick Simpson of www.forex-fx-4x.com
1.0050 is aligned with a major price pivot area, as can be seen on the attached weekly time frame USDCAD chart. A close above this level would add weight to the Loonie upside scenario.
USDCAD ended the week with a 1.38% gain. The 196 pips covered represents 178% of the average weekly range over 20 weeks – a significant increase in volatility.
Any further corrective move lower once again brings the 1.000 parity level into focus as a potential support area.
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