The comments from the BOC were a touch more positive (I would not call them hawkish) and the USDCAD has reacted accordingly. The price has stepped below the 200 hour MA (green line at 1 ), 200 day MA (green horizontal line at 1.08916 – 2), and moved briefly below the 100 hour MA (blue line at 3). The midpoint of the week at 1.0875 and the 100 day MA are the next targets for the sellers to get below to keep the trend going.
USDCAD falls below support targets. Can the sellers keep the control.
If the sellers are to remain in control, risk can be defined against the broken levels. That just makes sense. Traders love of big numbers – like 1.0900- This may also be a line in the sand for trading today. What we should not see, is a move back above the 200 hour MA at the 1.09064 level. What was broken becomes resistance and this was the 1st broken level after the announcement.
