Sellers breaking the pair lower
As London traders look toward the end of the day, the USDCAD (and USD) continues to fall. For the USDCAD, the pair fell below the 100 hour MA during the last hourly bar at 1.36519. That was the first break since June 24.
The run lower cracked below the 38.2% retracement at 1.3627 (a risk level now) and the 200 hour MA at 1.36073 (another closer risk level now). The 50% of the range from last week comes in at 1.3599 and has also been breached.
The range for the day is up to 104 pips. The 22 day average is 112. At the start of the NY session the range was only 46 pips or so. As a result, the day has more or less reached its target. That may give traders some cause for pause.
Nevertheless, with the quickness of the move, if there is a correction it will need to get and stay above that 200 hour MA at the least and move above 1.3627 if there is more upside potential.
