Can the sellers keep the pressure on
Let's face it. The price action in the USDCAD is not exactly inspiring today.
Looking at the 5 minute chart,
- There is a lot of ups and downs.
- The 100 and 200 bar MA are converged and
- Those MAs are going sideways indicative of a market that does know if it wants to go up or down.
The price has just made a new low, and is trying to move away from the 100 and 200 bar MAs (converged at 1.29456). Stay below and the bigger fish are lower at the 200 and 100 hour MAs at the 1.2900 and 1.28783 respectively.
Taking a look at the hourly chart, since February 28th. the price action has been up and down and back up again.
The last run higher, stalled moved above a swing area at the 1.2958-61 area (see red circles) but stalled ahead of the 1.3000 double top from last week's trading.
Today, the price action had a number of hourly bars above the 1.2956-61 level but no closes above that swing area. That gives the sellers somewhat of an advantage.
Having said that, the 200 hour MA at 1.2900 and the 100 hour MA at 1.2874 still loom as key levels below. Also the housing data was not hot today. BOC Poloz was more dovish yesterday and that shot the USDCAD higher.
So although the technicals are tilting lower, the MAs below should give sellers some cause for pause. Look for buyers in that area on a dip.
For the time being though, the sellers are making a play on the 5-minute and hourly chart.
