Falling 100 hour MA catches up to the price. Range for the week is 59 pips.
The USDCAD is mired in a narrow 59 pip trading range this week. Admittedly, that is an extension of the 48 pip range through yesterday. That is the good news. The not so good news for the buyers that is, is the highs today could not sustain momentum. The price action is still up and down with limited price action.
What has helped to limit the upside today has been the falling 100 hour moving average (blue line in the chart above). That moving average line has put a lid on the price action on each of the attempts to go higher. The moving average line currently comes in at 1.31450. It would take a move above that line (and stay above) to give buyers some additional confidence. Failure to do that and the sellers remain more in control.
The low for the week was reached yesterday at 1.30986. That did take out the low from Monday but only by a pip or 2. The low today is at 1.31149. The range today is only 42 pips (22 day averages 74 pips).
There is room to roam today and for the week. Something has to give. Getting above the 100 hour moving average is the obvious barometer for buyers and sellers. Get above is more bullish, stay below keeps the sellers more control. On a break above, the high for the day at 1.31567 will be the next closest target to get to and through. Above that and traders will be looking toward a potential extension to the 38.2% retracement of the move down from last week's high at 1.31907.
On the downside getting below the swing low from Friday at 1.31083, and the lows from Monday and Tuesday down to 1.30986 would open up the downside for more downside probing.
For now sellers are in control, price action is limited, but there is room to roam.
