Fall below the 200 hour MA tilted the buyers back into sellers in the USDCAD
The USDCAD started the NY session with a narrow 36 pip trading range. The last few hours has seen that range expand to 91 pips (75 pips is the average over the last 22 days).
Technically, the price not only fell below its London morning session low at 1.31666, but also below its 200 hour moving average near the same level. A trendline and swing area was also breached between 1.31567 and 1.31622 both adding to the bearish bias.
The price low extended all the way to a low of 1.3112. That took the price within the swing area going back to October 9, October 12 and October 13 between 1.30986 and 1.31157. If the pair is to move lower, getting below the swing lows would be the next targets. Conversely, we can also expect more of a battle in the lower yellow area as dip buyers lean with risk being defined and limited (with stops on a break).
What would ruin the bearish run?
A move back above the low from yesterday at 1.3150 would take some of the bearishness out of the market today. Of course, staying above the 1.30986 gives buyers some hope for a rebound as well.
