USDCAD backtracks earlier gains

Technical Analysis

Author: Greg Michalowski | usdcad

Moves back to 200 and 100 hour MAs at 1.3092-947

The USDCAD moved higher after the BOC statement earlier.  The tone was a bit more dovish given the strong job gains/economy of late.  

The press conference seemed to focus on the risk of the trade war on economic growth. There was some concern about the CAD it seemed.  However, at the end, Poloz seemed to suggest that if there is more of a trade war shock, monetary policy may not do much.
 
Moves back to 200 and 100 hour MAs at 1.3092-947

The USDCAD gave up a good bit of the gains and looks back toward the 200 and 100 hour MAs (and the 1.31000 level) at 1.30947 and 1.30920 respectively. A move below those MAs would frustrate the buyers today and tilt the bias back to the downside.

PS The high today stalled at a swing area in the 1.31395-445 area. Holding against that area, increases that areas importance going forward. Be aware if there is a base and move higher again....Sellers leaned against the area. 

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