The USDCAD moved higher in the Asian session today and in the process moved above its 100 hour moving average currently at 1.2500 (a nice round number). There was a brief dip below that moving average level in the early European session, but the buyers returned and pushed the price toward the 200 hour moving average above (green line) currently at 1.25361. The high price stalled at 1.25326, four pips from that moving average level.
The subsequent move back to the downside has once again found support against its 100 hour moving average. The current price trades between the two moving averages at 1.2523.
The price of the USDCAD has been trending to the downside. There was a corrective move on Monday which saw the price extend above the 100 hour MA and test the 200 hour MA. However, that momentum move to the upside failed and the price started to trade back below the 100 hour moving average - until today that is.
Now the battle is on as traders decide whether the move to the downside is over and there will be more upside probing (on a break of the 200 hour MA above), OR it the move lower is not and the downside momentum continues (on a break back below the 100 hour MA).