Topside trend line stalls the rally
The USDCAD is retesting - and now breaking below - its 200 hour moving average currently at 1.26131. The low just reached 1.26098 on the hourly chart above.
In trading both yesterday and earlier today, the price for the USDCAD pair did break below that MA, but could not stay below, which is indicative of the uncertainty in the market for the pairs bias.
However, the run to the upside today did stall just ahead of its a topside trend line. That helped to keep the bears in play.
The price has fallen from the Friday high at 1.27444 and is working on its 3rd day down for the week. The USDCAD close yesterday at 1.2636.
With the price now below its 200 hour moving average traders will be looking toward a break of the 50% retracement of the move up from the Fed 25 low. That level comes in at 1.26057. Below that an traders would be targeting the low for the day at 1.25917.