USDCAD Surges for Sixth Straight Day: Buyers Dominate Market

UPDATE: The USDCAD currency pair is witnessing a surge, marking its sixth consecutive day of gains as buyers capitalize on market momentum.

Today, October 15, 2023, the USDCAD has extended its upward trajectory, climbing to 1.4140. This rally follows a significant rebound after a failed break below the 50% midpoint at 1.3903, igniting renewed buying interest. The momentum further accelerated post the Federal Open Market Committee (FOMC) rate decision, which was perceived as less dovish than anticipated.

The pair has successfully pushed above critical technical levels, including both its 100- and 200-hour moving averages. Buyers are bolstered by a previous dip below the 200-hour MA last Thursday, which was quickly reversed, reaffirming confidence among traders.

As of yesterday, the USDCAD broke through a significant swing area between 1.4060 and 1.4067, along with surpassing October’s high at 1.4079. This breakout confirms the prevailing bullish sentiment, with today’s price action reflecting the continuation of that trend.

The immediate focus now shifts to the next major target at the 50% retracement of the 2025 trading range, set at 1.4166. A breakthrough above this level could reinforce buyer control, potentially prompting sellers to retreat and solidifying the upward momentum.

This developing trend underscores a significant shift in market dynamics, making it essential for traders to monitor these levels closely. The video accompanying this report illustrates the technical movements and provides insights into the risk and target levels.

As the USDCAD continues its ascent, market participants are advised to stay alert for any signs of reversal or further gains, as the current momentum remains firmly in play.