The USDCAD has moved to a new session low in the process took out the January 19, 2022 low for the year at 1.24476. The low price just reached 1.24407. The price has not traded this low since November 10, 2021.
Looking at the daily chart, the price is been trading above and below its 50% midpoint of the range since the June 2021 low. That midpoint comes in at 1.24846. On the daily chart of the price can stay below that level, the sellers would be more control. On the downside off the daily chart, the next target area comes between 1.2364 and 1.2383. That area brackets the 61.8% retracement at 1.23717.
Drilling to the hourly chart below, the Monday high stalled near its 200 hour moving average (green line), and yesterday, the price high stalled against its 100 hour moving average.
The inability to move above those moving average levels give the sellers the go-ahead to move to the downside. The pair in the last hourly bar broke below the swing lows from last Friday and yesterday near the 1.2465 level.
Close resistance would now be that area near 1.2465. Stay below keeps the sellers in firm control on the break.
More conservative resistance would come against the falling 100 hour moving average 1.2509 currently. Move above that level would give buyers some added comfort, and give sellers additional cause for pause after the break lower failure.
For now, the sellers are in control below 1.24645.
