The USDCAD is pushing lower on the back of the better than expected wholesale sales data this morning (+1.8% vs +0.8%e). The price is currently breaking below the 100 hour MA (blue line in the chart below) and triggering stops in the process. In the London session the pair tested the recent topside trend line and found the sellers against that level (red circle 3).
USDCAD has moved lower on the back of stronger Wholesale Sales
For traders looking for a further push to to the downside, the 50 % of the weeks trading range and the 200 hour MA (green line) is nice risk defining level. A break below the 1.13000 level has the low from yesterday at 1.1292 not far away.
One thing that makes me cautious is the low from Tuesday found quick buyers. The market does not forget that easily. So expect dips to find profit taking. Then again, the USDCAD is not may favorite pair in the best of days. A clue to the strength of sellers will come against the 200 hour MA and 50% retracement. Watch that level on corrections.
