The USDCAD has moved to a new North American session low, and in the process tested its 200 hour moving average 1.26285. The low price reached 1.2633
Recall from yesterday, the price did extend below that moving average line after the tamer than expected CPI, but the break was not for long. The price moved back higher and closed near session highs.
Today, the highs were extended marginally and in the process tested a swing area between 1.26938 and 1.27059 (see green numbered circles). The high price reached 1.27073 (just a pip or so above that high extreme) and moved back lower.
That swing area is the upper extreme between 1.26938 and 1.27059 of a "red box" that has mostly contained the price action going back to August 23. The lower extreme comes in between 1.2568 and 1.25832 (see red numbered circles). Yes, there have been extensions both above and below the red box, but most of the price action is centered within that area.
With the price near the middle of the red box and between the 200 hour moving average at 1.26285 and the 100 hour moving average at 1.26595, the bias is neutral. Buyers and sellers will be looking for the next shove outside of those moving averages with hopefully momentum on the break.