Allows for the 100 hour MA to catch up to the price.
The USDCAD is not doing much today. The low to high trading range comes in at 30 pips vs a 22 day average (about a month of trading) of 69 pips. There has been a lot of ups and downs.
The sideways action has allowed the 100 hour MA and upward sloping trend line to catch up to the price. That MA comes in at 1.24326. The trend line cuts across at 1.24225 (both are rising). Those level sis near the swing high at 1.24308 from October 27th. The low for the day comes in at 1.24348. The low Friday came in at 1.24351.
Going forward, Stay above the trend line/100 hour MA is more bullish at least in the short term.
Having said that, with a 30 pip trading range, the buyers aren't exactly "running away with ball". The 30.2% retracement of the move down from the end of September high comes in at 1.24729. That represents a minimum retracement target if the buyers are to start to take more control from the sellers. Just above that, sits the 200 day moving average which cuts across at 1.24766. Getting above both those levels and stay above is the BULLISH equivalent of moving below the 100 hour moving average and trendline on the downside (for the BEARS/SELLERS).
The the price sits between those extremes and awaits the next shove. The Monday trade does not seem to have the momentum to push one way or the other. However, traders will be on their toes looking for the next break (and hopeful run in the direction of the break).