The USDCAD on the daily chart, moved up to test the low of the swing area near 1.38045. The move higher earlier this week was held by oil prices moving to the downside. Today, oil prices are higher by about $1 and we are seeing a rotation to the downside in the USDCAD (higher CAD) as a result.
Technically, the high price in the USDCADA yesterday extended to 1.3814. The high price today was lower at 1.3806. Buyers had their chance above those levels, and they could not stay momentum toward the high of the swing area.
Today the price is lower after 3 strong days the upside held by falling oil prices.
Drilling to the hourly chart below, the price rise yesterday extended above its 200-hour moving average (green line in the chart below). That moving average currently comes in at 1.3780. In trading today, buyers tried to hold the price above that moving average line in the Asian and European sessions. However, in the early North American session the price has dipped below that level toward the 50% midpoint of the range since last week’s high. That level comes in at 1.37634.
With the buyers failing on the upside off the daily chart, and the price below the 200 hour moving average on the hourly chart, the sellers are making a play. If the price can remain below the 200-hour moving average give or take a few pips, the tilt is to the downside at least in the short term. Getting below the 50% midpoint at 1.37634 would give the sellers more confidence for a potential move down toward the rising 100-hour moving average near 1.37315.
This article was written by Greg Michalowski at www.forexlive.com. Source