USDCAD bottoms against a swing area target and bounces. What next?

<p>The USDCAD bottomed near a key swing area target at 1.3370 – 1.33776 (see red numbered circles on the chart below). The low prices reached 1.33725 and bounced. The move to the upside has reached 1.3402. That level is near the broken 61.8% retracement of the move up from the July low at 1.33999 (call it 1.3400). Getting above the 1.3400 level would be the easiest target – and closest target – for buyers to show that they are winning at least in the short term. A continuation move above 1.34214 (high of a swing area – see green numbered circles) would give those buyers more confidence.</p><p>For now, however, the upside probing has found willing sellers nearly 1.3400 level keeping the sellers firmly control. On the downside, a break of the 1.3370 – 77 level would open the door for further downside momentum.</p>

This article was written by Greg Michalowski at www.forexlive.com.