The USDCAD has just kissed off a nice cluster of resistance as defined by the:
USDCAD trades between the goal posts defined by the 100 and 200 hour MAs
- 100 hour moving average (blue line in the chart above) at the 1.25855 level currently
- Underside of the broken trend line at the 1.2583 level
- 50% retracement level at the 1.25744 level
The price has rotated back lower and looks toward the 200 hour MA (green line in the chart above) at the 1.25216 level as support. This is also the old 38.2% retracement of the move down from the high on Friday to the low reached in trading yesterday. So like the resistance above, this should be good support below.
With the pair trading between what I call the goal posts (as defined by the 100 and 200 hour moving averages), the pair is in a neutral area with the break of either extreme likely to lead to a momentum move in the direction of the break. Until that time, however, there could be some ping-ponging between the moving average levels.
