On Friday the USDCAD moved above the 100 hour MA (blue line in the chart above) for the first time since August 3rd after the weaker than expected employment report. Soon thereafter, the pair ran into the USD selling rush and that break above was reversed (FAILED). The 100 hour MA currently comes in at the 0.9939 level (blue line in the chart above) and a move above will be needed to give the buyers a reason to cheer. Working in the dip buyers favor is:
- The range is a dismal 30 pips. So there is room to extend
- The price reached new low of 0.9904 today – taking out the lows from Thursday and Friday at 0.9906 and 0.99047 respectively – but that low today saw zero momentum. This suggests that the market may be running out of sellers against the 0.9900 level (stops below)
Nevertheless, for the dip buyers to get some satisfaction, a move above that 100 hour MA is needed. A move above opens the door for further upside potential with 0.9951 and 0.9968 (high from Friday) and 0.99725 (38.2% of the move down from August high) as the next targets.
