USDCAD cracks lower and triggers stops.
Will the sellers tilt/keep the technical bias to the downside now?
The USDCAD cracked lower in the current bar and the price fell below the:
- 200 hour moving average at 1.32965
- 38.2% retracement at 1.32929
- swing area between 1.32877 and 1.32953 (yellow area)
- 200 day moving average 1.32858
The price low extended all the way down to 1.3272 and rebounded we currently trade around 1.3290.
If the sellers are to remain in control stay below the 200 hour moving average 1.32965 (near the swing area high as well) is key. That is the risk level for shorts now. Stay below is more bearish. Move above muddies the technical break lower picture.
The market will then look for a break back below the 200 day moving average to help confirm sellers. Below the 200 day moving average at 1.32858 is the 50% retracement at 1.3276