High from yesterday disappointed and has led to the corrective action
The USDCAD has had its share of ups and downs today. Recall from yesterday, the pair made a run at the high from Monday (highest high since July 25th), but failed after a 4 pip break. Not good. The price stepped down toward the 100 hour MA (blue line). That line has been tested 5 separate times. The most recent one, stall a few pips above the line. The MA line is at 1.31185.
We currently trade at 1.31407 - between the 100 hour MA below at 1.31185 and below the swing highs from this week at 1.3170-74. The close from yesterday came in at 1.3138. So just about unchanged on the day. Flip a coin on an intraday trade I guess, but overall staying above the 100 hour MA (and rising) is a risk level for the intermediate bias. As long as it stays above - and 5 times it was tested today - the buyers are still holding on the bias.
Taking a broader look at the daily chart below, the 1.3124 was the swing high from back in March. The price is above that level now. On the topside, the trend line comes in at 1.31785. That is just above the high from yesterday of course at 1.3174.
