USDCAD falls back below the 100/200 hour MAs and that tilts the bias back down

The USDCAD traded in a narrow band last week of about 120 pips. The price closed near the highs and above the 30.2% retracement of the July trading range at 1.3204.

In trading today, the Asian-Pacific session saw the price initially moved to the upside but stall ahead of the high price from last Monday and Tuesday. The price moved back below the 38.2% retracement level (@ 1.3204), and buyers turned to sellers. When the converged 100 and 200-hour moving averages were broken near 1.3176, that gave sellers more incentive to push lower. It also tilted the bias back to the downside from a technical perspective. Sellers are in control below the 100 and 200-hour moving averages.

What now?

The low price from Friday is being tested near 1.31523. A move below would have traders looking toward the 1.3134 – 1.3143 swing area. Move below that level and traders would target 1.31157 and the extreme low from July at 1.30918.

On the topside, it would take a move back above the converged 100 and 200-hour moving averages to shift the technical bias in the USDCAD back to the upside once again.

This article was written by Greg Michalowski at Source