100 hour MA and underside of broken trend line holds and sends the pair back toward 200 hour MA below
The USDCAD cracked below a upward sloping trendline late in the session yesterday and agent momentum to the price down toward the 200 hour moving average (green line currently at 1.27755). The pairs price did dipped below that moving average line on 2 separate occasions but could not gain any downside momentum.
The price subsequently rose in the early North American session extending the trading range for the day. However the underside of the broken trend line and the 100 hour moving average (blue line in the chart above) stalled the rally, and has pushed the pair back down toward the 200 hour moving average.
Apart from a few hourly bars today, the pair has spent the day between the 2 moving averages. Traders will be looking for a break with momentum.
On the downside, get below the 200 hour moving average will also have the 38.2% retracement 1.27684 and the most for the day to give the sellers more confidence (the low for the day reached 1.27623.
If support holds, getting back above the 1.2800 level and then the 100 hour MA/underside of broken trend line at 1.2809 area would be needed to give the buyers more confidence.
Until then, the pair is waffling back and forth between the moving averages as traders ponder the next move in the pair.
Crude oil futures are up another dollars 27 today or 2.32% to $56.02 (highest level in a year). Typically higher prices tend to help the CAD (lower USDCAD), but of course there are other influencing factors in play
