The USDCAD has been supported today after weaker than expected CPI. That rally higher has taken the price back up toward resistance against the 100 hour MA (blue line in the chart above) . This MA was tested and broken at higher level earlier in the week, but could not muster any upside momentum. When the 0.9900 level was breached after those failures, the price wandered to the lowest levels since early May.
The 100 hour MA at 0.9901 currently is joined by the 38.2% of the move down from the most recent high from August 9th (see chart). That, combined with the floor from the 8th 10th, 13th and 14th at the 0.9903-06 area should give traders cause for pause in this area for the time being. A move above (and staying above the 100 hour MA) could see a further run toward the 0.99136 midpoint level. Above that the declining 200 hour MA at the 0.9921 level (currently).
On the downside, traders will likely look at the 0.9881 to provide support now. This was a low floor yesterday before breaking in NY afternoon trading.
