USD/CAD falls past its 200-hour moving average to session lows of 1.2622

USD/CAD H1 24-08

The pair saw a significant retreat in trading yesterday but the move ultimately stalled near the 200-hour moving average (blue line) but sellers are starting to make a play again as we get into European morning trade.

The drop below the 200-hour moving average at 1.2645 now sees sellers seize near-term control and that opens up the potential for a further downside leg in the pair over the next few sessions (or at least it exposes some vulnerabilities).

Looking at the daily chart:

USD/CAD D1 24-08

The latest drop looks to push the pair further towards a test of the 200-day moving average (blue line) next at 1.2550. That will arguably be the next key spot for buyers to put up any defense, at least from a technical perspective.

A softer dollar and a rebound in oil prices have also been key themes in shoving the pair lower so far to start the week and that might not change until we get to Jackson Hole.