USDCAD falls below its 100 hour moving average

Technical Analysis

Author: Greg Michalowski | usdcad

Weaker US retail sales and stronger Canada wholesale trade sales lead to USDCAD fall

The USDCAD is falling below its 100 hour moving average of 1.21173 after weaker US retail sales and stronger Canada wholesale trade sales lead to sellers in the pair.

Weaker US retail sales and stronger Canada wholesale trade sales lead to USDCAD fall
Technically, the pairs move higher yesterday and breached its 200 hour moving average for the first time since April 21. However that break was only good for one hourly bar before moving back below the MA level.   In Asian trading today, the price moved up to test its 200 hour moving average once again (see green line in the chart above), but found willing sellers against the level.  Risk was defined and limited, and sellers leaned against the level.

Now with the break below the 100 hour moving average and also below a swing area at 1.2132 area (those levels are now close risk four sellers), the sellers are adding to their control.  

The low from yesterday at 1.2103 is being tested currently. A break below would have traders looking toward 1.20781 (swing lows from May 10 and May 11) as the next key target ahead of the low for the week at 1.20447.

Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose