The USDCAD fell yesterday and in the process tested its 100-day moving average at 1.33975. On Tuesday the price fell below that moving average only to bounce back higher. The break below the 100 day moving average failed. Buyers leaned and pushed the price higher yesterday.
In trading today, the price was able to extend above its higher 200-day moving average at 1.34615 and its 100-hour moving average 1.3476. The run to the upside was able to extend above its 200-hour moving average at 1.35123 (green line in the chart below), but momentum did not be sustained. The price has since corrected lower over the last few hours.
That correction has now stalled against the broken 100-hour moving average 1.3476, and above the key 200-day moving average of 1.34615. If the buyers are serious, holding these levels would be key for a continuation of the move to the upside.
Conversely, fall back below the levels and the buyers turn to sellers.
This week, the sellers had their shot below the 100-day moving average and 200-day moving average. They missed. Can the buyers now take back more control?
The technical levels at the 100-hour moving average and 200-day moving average will tell the story.
This article was written by Greg Michalowski at www.forexlive.com. Source