100 hour MA stalls the fall and the break of 200 hour MA sends the price shooting higher
The USDCAD was trading between the 100/200 hour MA goalposts in an earlier post and after holding the 100 hour moving average, worked higher and broke back above its 200 hour moving average (green line).
Recall from last Thursday and Friday, the price highs for those days stalled right at the 200 hour moving average. Earlier today, the high price once again found sellers leaning against the level. The fourth test could not hold back the buyers. The moving average is broken, stops were triggered, sellers turned to buyers and the price shot higher.
The momentum also drove the price back above its 100 and 200 bar moving average on the 4 hour chart near 1.25578. The high price reached 1.25861 before stalling.
What next?
Drilling to the 5-minute chart below, the price action shows a strong buying on the break. The correction off the high will look toward the 38.2% retracement at 1.25597 for close support. Hold, and the buyers remain in firm control.
