The Bank of Canada cut rates yesterday, and soon after the decision, the price of the USDCAD moved higher (lower CAD). That move to the upside broke above an upside target area defined by the swing area between 1.3714 and 1.3728. The price also moved about the topside trendline. What it did not do, is extend above the high price from two weeks ago at 1.3742, and when the aforementioned swing area could not hold support (after the break higher), buyers turned to sellers and pushed the price lower.
The move lower took the price below its 200 are moving average on the four hour chart at 1.3673, but not the 100 bar moving average on the same chart at 1.3655. That has given the buyers the edge from a technical perspective, “with work to do”.
The “work to do” is to get above the swing level and the trend line and stay above.
In this video, I outline the move and what needs to happen to keep the buyers and control and take more control.
This article was written by Greg Michalowski at www.forexlive.com. Source