USDCAD can’t extend above swing area resistance, and backtracks lower to 100/200 hour MAs

The USDCAD moved up to test a swing area between 1.3271 and 1.3285 on Wednesday, and again yesterday on 2 separate tests. The high price yesterday stalled right against the high of that swing area at 1.3285. It couldn’t get through and make a run at the 38.2% retracement above at 1.33222.

In trading today, the price tried once again to push the upside, but once again found willing sellers near the 1.32853 level. The last few hours have seen the price rotate to the downside helped by the weaker-than-expected core PCE data. It came in at 4.6% versus 4.7% expected and 4.7% last. It’s still high, but it moved down at least.

The subsequent move to the downside in the USD and the USDCAD extended through the rising 100-hour moving average (blue line) at 1.3215 but fell short of the 200-hour moving average (green line in the chart below) currently at 1.32007. The price has bounced higher and currently trades at 1.3239.

This week the buyers certainly had their shot to take the price higher. They did extend back above the 200-hour moving average for the 1st time since June 1. That opened the upside door open, but stall at the targeted swing area and did not reach the 38.2% above, which has to be disappointing.

So the battle is on with buyers against the 100/200 hour MA and sellers at the above swing area (up to 1.32853).

This article was written by Greg Michalowski at Source