USDCAD tests a key support area in what has been an up and down trading day

The USDCAD has had an up-and-down trading day. The initial move was to the upside. The price extended above the hide from Friday and also the 50% midpoint of the December trading range at 1.33971. However momentum quickly faded and the buyers turned to sellers help by the move lower in yields, higher stocks and the unwind of the USD bullishness seen last week.

The price is back down near lows for the day, and at the same time, is testing the rising 100-hour moving average at 1.3350. Just below that level is the broken 38.2% retracement of the December trading range. That level comes in at 1.3345. The Asian session lows stalled near that level.

On a break below, it would open the door for further selling momentum with 1.3300 – 1.33107 as the next target area. Below that, and the 200 hour moving average at 1.32859 will be targeted.

Conversely, hold the support here, and a rotation back out toward 1.3371 would be eyed. Move above that level,and it opens the door for another retest of the 50% midpoint at 1.33971.

This article was written by Greg Michalowski at Source