The USDCAD has moved lower with the overall USD decline today. Yields are lower. Technical levels are also being breached. The weak pending home sales data just released is not helping either.
Technically, the price has moved between its 200-bar moving average on the 4-hour chart at 1.3690, and its 100 bar moving average on the 4-hour chart at 1.3663. Also near the 100 bar moving average is the 100-hour and 200-hour moving averages. Both are converged at 1.3665 increasing the areas importance today and going forward.
So the decline today has taken the USDCAD into a neutral territory from a technical perspective. Traders will now use those support and resistance levels in their bias-defining roadmap.
- Moving above 1.3690 tilts the technical bias more to the upside. Moving below the cluster of support near 1.3663 increases the bearish bias.
This article was written by Greg Michalowski at www.forexlive.com. Source