Break of 200 day MA did not see the expected momentum lower
The USDCAD has moved higher and away from the 200 day moving average at 1.2500. The price traded above and below that moving average over the last 7 or 8 hours with little downside momentum. That was a bit of a disappointment (the price could not get to the June 22 low of 1.34854). With stocks opening higher but giving up gains, there has been a counter move back higher and away from that MA level.
Having said that, the pair still needs to get and stay above the 50% retracement of the range since the June 9 low. That level comes in at 1.35146. On more upside momentum the underside of the broken trend line (see green numbered circles) comes in at 1.35327.
Traders looking for a move higher on the 200 day disappointment, will now look for the 200 day moving average to hold support at the 1.3500 level.
