USDCAD corrects toward the 100 day MA/50% retracement

Technical Analysis

Author: Greg Michalowski | usdcad

Traders need to respect the area on the test

Earlier today, the price of the USDCAD cracked above the 100 day MA at 1.30497 and the 50% of the move down from the September 6th high at 1.3054.  That break took the price to a day high of 1.3081. 

The price has corrected backed down toward those key levels now, and I would expect that traders will respect that area on the dip (look for buyers). 

If it fails, however, the buyers from earlier today, may just look to exit and go short instead.  Traders don't like to see key levels busted and then reversed.  

For now, look for the dip buyers to enter and keep the buyers in control. 

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