The USDCAD broke above (and closed above) its 100 hour moving average for the first time since April 21. The moving average currently comes in at 1.22971. The high for the day reached up toward the percent of the move down from last Wednesday's high at 1.23414, but stalled not far from that level. The correction lower, however, has found support buyers against the aforementioned 100 hour moving average and bounced. That keeps the buyers still in play.
Although the move above the 100 hour MA is a step in the bullish direction, the correction did stall right around the 50% of THE LAST LEG LOWER only. Getting above the 50% is the minimum corrective target. As a result, traders will need to push off the 100 hour moving average and pushed through the 50% retracement to give the buyers more control.
Ultimately getting above the 200 hour moving average (green line currently at 1.23716 and moving lower), would be needed to give buyers more bias control.
SUMMARY: Good news for the dip buyers above the 100 hour MA, BUT.... there is more work to be done to increase the bullish bias. Step 1 for dip buyers is to stay above the 100 hour MA at 1.22971. Step 2 is to get above the minimum 50% midpoint at 1.23414. Step 3 is to get and stay above the falling 200 hour moving average at 1.23716. That is the work that needs to be done if the buyers are to take back more and more control from the sellers.