High stalled at swing area. Break below 100 hour MA added to the downside momentum
The USDCAD has run lower with the dollar selling and in the process is getting closer to a upward sloping trendline currently at 1.3529. The low for the week (on Monday) reached 1.35185. The 50% midpoint of the range since the June 9 low comes in at 1.35146.
The selling today got started after the pair stalled near a swing area between 1.36219 and 1.36292. The fall gathered momentum on a break of the 100 hour moving average at 1.35664. That level is now risk for sellers looking for a bigger move to the downside. Stay below keeps the bears/sellers in control.
The pair is also getting closer to its rising 200 day moving average at 1.34991. Recall back on June 23, the price low got within a few pips of that key moving average level and bounced higher. The price has not traded below its 200 day moving average since June 11.
Sellers have made a push lower and tilted the bias to the downside. However the lows for the week, and the 50% retracement remain as downsides hurdles to get to and through. Much will depend on whether the 100 hour moving average can hold resistance for the day.
