The USDCAD fell yesterday after stalling at its rising 100-hour moving average, and an early-Asia bounce today failed beneath the 1.4105 swing area. That inability to extend higher invited sellers back in, pushing the pair below the 100-hour moving average and through the 1.4079 swing level. Momentum accelerated into a key support zone between 1.4060 and 1.40668, which also houses the rising 200-hour moving average at 1.40623. The low held just above that at 1.40665, and a rebound briefly reclaimed the 100-hour moving average before failing once again.
Price action is now caught between the 200-hour MA below (1.4062) and the 100-hour MA above (1.40966), with 1.4079 acting as a natural pivot in the middle. Until the pair can break decisively above the 100-hour MA to revive bullish momentum—or fall below the 200-hour MA to tilt the bias lower—traders are likely to continue probing this range, waiting for the next directional shove.
This article was written by Greg Michalowski at investinglive.com.