USDCAD falls toward the MA support targets.

Technical Analysis

Author: Greg Michalowski | usdcad

Tested 50% and backed off 

The BOC tightened yesterday and implied "gradual" hikes (whatever that means), but the CAD was caught in a USD run higher. Technically yesterday, the low stalled near the Monday low and spiked back higher. When it moved back above the 100 bar MA (blue line), the sellers gave up.

Today, the high - in the opening hour of trading - stalled ahead of the 50% at 1.32224 (high reached 1.3217).  The price has been waffling lower. 

The USD selling seen in the last hour or so, took the price back toward an old trend line that was broken yesterday and the 200 hour MA (green line).  That level (at 1.31428) should be a support level for buyers to lean against on a correction. A move below and the waters could get more muddy for the longs especially if the 100 hour MA is broken at 1.31326. 

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