Sellers holding on to control
Remember on Tuesday....The price of the USDCAD spiked above the 100 hour MA and fell back down. It went above again, and fell back down. The third look stalled just ahead of the MA line and the price fell toward the lower trend line and stalled.
Yesterday, the price moved toward the lower trend line and found earlier buyers.
Today, the corrective move higher took the price back to the 100 hour MA and 4 separate hourly bars traded above the MA line. Four hourly bars stalled. The last hourly bar reestablished selling against the MA line...
Buyers can't win. They failed. Sellers are holding on to control.
Now, there is a chink in the sellers armor. The price can regroup and race back above and the next time run, but until then I - or others - can't get too excited.
On the downside, remember that the 100 day MA is looming at the 1.29604 level. Yesterday's low reached 1.29742. That is not exactly a hard test, but it got closer. The price has not traded below the 100 day MA since April 20 (see blue line in the chart below).
