The USDCAD moved to a new 2 month low (lowest level since November 10) after breaking below the low from yesterday at 1.2485). Before that, the price broke below its 200 day moving average at 1.24982. The run to the downside took out the low from last week at 1.24525, but only by about 4-5 pips. A new low came in at 1.24476 today.
The lack of momentum on the break has led to sellers turning back to buyers in the North American session. The price has moved back up to retest its 200 day moving average 1.24982. So far there is a stall against that level. The prices trading between it and the lows from yesterday and earlier today at 1.2485. The market traders await for the next shove. Does the 200 day moving average hold resistance and push back below 1.2485, or is the 200 day broken along with the 100 hour moving average 1.25115, and additional upside momentum seen?
Moving above the 100 hour moving average would next target a swing area between 1.25257 and 1.25354 followed by the falling 200 hour moving average 1.25567. The last time the price traded above its 200 hour moving average was back on January 6. Getting above it would give the buyers more confidence especially after the failed break.
Conversely, hold below the 200 day moving average and 100 hour moving average, would keep the sellers comfortable and potential for further downside momentum.
