Testing the day lows.
The USDCAD tumbled instantly lower after the BOC did not ease. It was a 50-50 proposition. There may have been a lot priced in. IN any case, the pair fell in an instant and it made it's way to - and through - the 100 hour MA to a low of 1.4486.
As fast as the price fell it corrected higher. That was ok as long as the price stayed below the close from yesterday at 1.4577. It has been 12 days of higher closes. A close below is all the sellers wanted to see.
Well, that 1.4577 level did not hold on the correction higher, and the squeeze was on. Oil falling below $27 (it is still below the level) and the price moved all the way back up to 1.4646.
Since that time, the price has wandered lower, ignoring the oil weakness and lo and behold that lower close looks to be a reality.
In the last 30 minutes, the price has moved back below the 100 hour MA at the 1.4516 level. The low has now extended to new lows at 1.4478. Traders will now use the 100 hour MA as resistance.
A lower close - FINALLY - with record low oil prices. No change in rates and plenty of pain. It has been a strange trip today, but ending with more bearishness for the 1st time in 2016.
