USDCAD trades to a new session high. What levels are in play through the FOMC decision. | Forexlive

The USDCAD is trading to a new session high and in the process is testing its 200 bar moving average on the 4 hour chart at 1.3644. The price is also entering into a swing area on the same chart between 1.3637 and 1.36748. The high on Monday extended above that level to 1.3684, but yesterday’s moved to the upside stalled ahead of that extreme at 1.3668.

A move above the 200 bar moving average on the 4 hour chart above, and the high of the extreme near 1.36748, should lead to a move toward the 1.3700 level where the falling 100 bar moving average is currently trading.

Drilling down to the hourly chart below, the last 3 trading days has seen the price move above its 200 hour moving average (green line in the chart below).

On Monday and Tuesday, the breaks above the 200 hour moving average failed. The current run to the upside has extended above that moving average at 1.36251. That level will be a close risk level for traders now. A move below that level would have traders looking toward the 1.35998 level where the 100 hour moving average is found. Move below it, and that would help to tilt the bias more in the downward direction.

Of course with the FOMC ahead, traders can choose to sit tight and wait for a break. On the topside move above 1.36748 should be bullish.

On the downside, falling below 1.3625 and then 1.3599 should open the downward direction for the pair.