Tested the 100 hour MA earlier in the session
The USDCAD is back down retesting the 100 hour MA at 1.32635. Just below that is the 200 hour MA at 1.32605 and below that is the 100 day MA at 1.32561. The cluster is from 1.32561 to 1.32635.
The convergence of the three MAs is in response to the ups and downs that has been the USDCAD over the last 8 or so trading days.
The range over the period has roughly been from 1.3232 below and 1.33039 above (or about 82 pips in total). In between are those moving averages all clustered together.
On Monday, the price was up testing the higher extreme and found sellers. On Tuesday, the price was back down testing the lower extreme and found buyers.
The high today fell short of the higher extremes and is back down retesting the MA cluster at the 1.3256 to 1.32635. Holding the MAs would keep the bulls more in control. A move below, however, will spoil that idea for the buyers and put the sellers more in control.
So....don't fight City Hall. The USDCAD remains mired in a range. Traders are waiting for the next shove out side the range. In between sits the cluster of MAs which will stay there and help provide an intermediate bias...or so it is hoped.
