The USDCAD felt sharper yesterday and in the process extended below its 100-day moving average and 50% retracement near 1.3538, its 100-bar moving average on the 4-hour chart at 1.35267. Today the selling was continued with a break below an upward-sloping trendline, and its 200-bar moving average on a 4-hour chart 1.34937.
The sellers found that their match however against the 200-day moving average 1.34787. Support buyers came in against that level and we’ve seen a modest increase off of that level in the early North American session.
Going forward, it would take a move below that moving average to increase the bearish bias. Conversely, a break back above its 200-bar moving average on a 4-hour chart at 1.34937 could see more upside-probing with the aforementioned 100-bar moving averages back in play..
This article was written by Greg Michalowski at www.forexlive.com. Source