A move above (and stay above) is needed to tilt the bias back higher
The USDCAD on the daily chart below, moved to a low of 1.3356 yesterday which was above an old ceiling going back to October 2019. That old ceiling (now a floor?) comes in at 1.3320 to 1.33457. It will take a move below to solicit more selling in the pair.
The correction higher has taken the price today back above its 200 day moving average at 1.34639. The high price reached 1.34871. However momentum faded and the price has since moved back below the moving average level. It will take a move above the 200 day moving average with momentum (and staying above) to give the buyers more confidence.
Drilling to the hourly chart, the low yesterday did fine support buyers ahead of a lower trend line (see blue numbered circles). The price has moved above a topside trend line and just retested that level on the downside. Move below and we could see a further moved to the downside for the pair.
The price has also moved back below its falling 100 hour moving average. The price moved above that 100 hour moving average for the 1st time since May 29, but is not been able to stay above. That moving average currently comes in at 1.3456 (just below the 100 day moving average).
Today's rally was able to extend above upside targets (trend line, 100 hour moving average and 200 day moving average) but the breaks could not be maintained). Needless to say if a bottom is in place, getting above those levels (in particular the 100 hour moving average and 200 day moving average) will be needed to give the buyers more confidence. Failure to do that and the sellers still remain in control.
