The USDCAD has continued its trend move to the downside since peaking at 1.32228 on Thursday of last week. The price moved down on Friday and tested 200 hour moving average (green line in the chart above). Today, the price opened just below that
average level and continued its move to the downside. The low price just reached 1.2933. That was just below the swing low from last Wednesday at 1.39353. Lows on July 8 reached 1.2935. On July 11, the low price reached 1.29344.
So there are a number of swing locals between 1.2933 and 1.29353. The current price trades at 1.2942 as traders continue to lean against the floor area.
What next?
Needless to say moving below the floor area would increase a bearish bias. Look for increased momentum to downside.
Conversely staying above the floor, and moving above the 1.29617 to 1.29657 level would give buyers against the floor area some needed comfort that a low is in place.
