The USDCAD just a few hours ago was testing and breaking above its 200 hour moving average for the 1st time since February 5. The the high price extended up to the low of a swing area between 1.2762 and 1.27645. The 50% retracement of the move down from February 2 was also in that area.
The break could not be sustained and the price has tumbled over the last 4 hours. The most recent break was back through the 100 hour moving average 1.27095. Earlier today, the price broke above that level for the 1st time since February 5 and based off that level before moving to the upside.
The pair has now completed the lab that took the price from the Asian session low of 1.2694. The low price just reached 1.2676.
Price action is volatile, but breaking back below the 100 hour moving average now sets that level as the bias defining level. Stay below keeps the buyers more bearish. The low for the week at 1.26599 cannot be ruled out as the next downside target.