USDCAD erases declines. Back higher on the day

The USDCAD tumbles below the 200 day MA after the CPI data in the US today. The fall earlier in the North American session took the price to the 100 hour MA (blue line), however, buyers slowed the fall and bounced the pair higher.

The retracement highs respected near the broken 200 day MA, but there level was rebroken once again, and the USDCAD pair is trading to new North American session highs.

The price has now reached a swing area between 1.2645 and 1.26566. The 50% midpoint is within that area at 1.26511. Oh…the price is now higher on the day too as the declines have been fully retraced.

What next?

Although there is risk to more ups and downs, the move back above the 200 day MA needs to be respected (more bullish). That is now close risk for buyers. A move above the 50% and the swing area would have traders looking toward the higher 100 day MA at 1.2686..