The USDCAD moved higher earlier in the day and in the process tested the high price from Friday near 1.3639. Those highs were short of another swing area near 1.36534. The inability to move above the high from Friday turned buyers into sellers. The weaker US data contributed to the decline from a fundamental standpoint.
However, the last hour has seen the price move to test its rising 100-hour moving average. Recall from yesterday the price also tested its 100-hour moving average at session lows. Support buyers leaned against the moving average yesterday.
That 100-hour moving average currently comes in at 1.35794. The price also moved within a swing area between 1.3564 and 1.3585.
It would now take a move below the 100-hour moving average to increase the bearish bias.
So overall, the high price today tested the high price from Friday. The low price today tested the 100 hour moving average which is what happened yesterday. Buyers and sellers are battling it out between the technical levels and waiting for the next break.
This article was written by Greg Michalowski at www.forexlive.com. Source