The price of the USDCAD moved above the technical levels but found some stall
The USDCAD is higher today and in the process has reached key technical resistance defined by the 50% retracement of the move down from the August 25 high on the hourly chart and the 200 hour moving average. Those levels come between 1.31134 and 1.31159. The high price moved just above that level at 1.31199 but as since backed off. We currently trade around the 1.3100 level.
Going forward, I would expect that the topside resistance technical levels would put more of a ceiling on the pair intraday at least. A move back below the 1.3100 level could see a rotation toward the broken 38.2% retracement 1.3087.
All bets are off if the price does move back above the 50% retracement.
Drilling down to the 5 minutes chart, you can see the apprehension above the 200 hour moving average. There have been to tries above the level and although the price trade above and below the moving average line, there was lots of ups and downs. On the downside, the rising 100 bar moving average comes in at 1.30923 currently. Keep an eye on that level for intraday clues. In the London morning session, the price corrected down toward that moving average only to find buyers ahead of it. Move below the moving average should solicit more selling at least intraday.
