100 hour moving average of 1.25321. The 200 day moving average is at 1.25783
The USDCAD moved higher on Friday trading to the highest level since July 28 in the process, However, sellers leaned against the 200 day MA (currently at 1.25783). That moving average saw traders leaning near the level again today, leading to a rotation back to the downside.
However, the buyers have reentered near the rising 100 hour moving average at 1.25321 and have held support against that moving average over the last three hourly bars.
With resistance against the 200 day moving average above and support near the 100 hour moving average below, the lines have been drawn for market traders. Traders have so far done the leaning against those levels. Should there be a break (either higher or lower), there should be a momentum move in the direction of the break.
Move below the 100 hour MA below will have traders looking toward the 200 hour moving average at 1.25105. Move below that moving average level and traders will start to eye the swing area between 1.2487 and 1.2492 (see green numbered circles).
On a break above the 200 day moving average, the swing highs between 1.2590 and 1.27074, followed by the 50% midpoint of the move down from the July 19 high at 1.2614 would be targeted.
For now the traders are leaning against moving averages and so far playing the range.
