Buyers and sellers back in battle.
The USDCAD based near its 100 hour MA on Friday (dipped below it after the jobs report), and quickly reversed higher. The run to the upside moved above a swing area at 1.3369 – 1.33766 on its way to a high just below the 1.3400 level (the high reached 1.33981).
Today, the price chopped up and down. The low price in the early London session did extend below the 1.33694 level to a low of 1.33668. However most of the price action remained below the highs from Friday and the support at 1.33694 (see red box in the chart above).
The dollars run to the downside in the New York morning session has sent the price outside that red box, and also back below its 200 hour moving average at 1.3359 (green line in the chart above). The low price as reach 1.3332. That is just above the
- swing lows from July 28 and July 30 at 1.33301,
- the swing low from the post employment numbers at 1.33235 and
- the 100 hour moving average at 1.3322 (blue line in the chart above).
A move below those levels would tilt the bias more to the downside technically.
For now however, the pair trades between the moving averages as buyers and sellers battle it out in the neutral area. Traders will be looking for the next shove outside the MA levels.