The USDCAD is falling below the 200 hour MA fro the second time in two days. Yesterday, the price moved below this MA line (green line in the chart below) for the first times since the break higher on October 31, but failed. The subsequent rotation higher took the price to the 100 hour MA (blue line) and like the break of the 200 hour MA, the break of the 100 hour MA to the topside failed.
USDCAD is back below the 200 hour MA. Looking for the MA to now be resistance.
Now we are faced with another break of the 200 hour MA. Is this the real thing or just a fantasy?
The good news is that the risk is limited form the sell side. The next target would be toward the lows from yesterday and the 50% of the move up from the October 29th low. That level comes in at the 1.12934 (the low yesterday was 1.1299).
