USDCAD dips below the 50% retracement at 1.31389.
The USDCAD is retracing some of the gains from yesterday (more dovish BOC statement).
The retracement comes after the pair got close but could not get above the 100 day MA at 1.31786. Also near the level were swing highs at 1.3179 to 1.31843 and the 61.8% retracement at 1.31833. The high price today reached 1.31708. Traders had a cause for pause against the cluster of topside resistance.
When the price could not extend higher, buyers and sellers of last 4 so hours of trading. The price has dipped back below the 50% retracement of the move down from the November high at 1.31389. The sellers are trying to
Going forward the cluster of resistance on the topside will need to be broken in order to tilt the bias even more in the upward direction.
Drilling down to the 5 minutes chart below, the price tried to stay above the 100/200 bar moving averages (blue and green lines) but could not sustain any upside momentum. The pair is currently testing the low for the day at 1.3131. A move below that level, will look toward the 38.2% retracement of the move up from yesterday's pre-BOC low. That level comes in at 1.3119.
Do we get a bounce off the day as lows? Or does the market continue to probe the downside.
