In an earlier post, I commented on the 1.2730 floor level that was developing in the USDCAD chart. That level was a corrective floor yesterday and also stalled declines during the Asian and North American session today. The price has subsequently broken below that level and stay below the level.
The momentum is increasing in the current hourly bar, as the pair breaks below an old trend line at 1.2704. The low price has just reached 1.26903.
If the price can now stay below the broken trend line (at 1.2704), and the 1.2730 level, traders will target the 38.2% of the move up from the low last week at 1.26598. Below that, and traders will start to target the rising 100 hour moving average at 1.26357 and the 200 day moving average of 1.26241. Yesterday, the price move back above the 200 day moving average for the first time since July 2020 nearly one year ago. I would expect that buyers would lean against that moving average level on a test.