The USDCAD is lower on the day but there is work to do. More specifically technically, the USDCAD pair needs to get and stay below the 100-hour moving average at 1.34819 (and moving higher) to show the sellers can take back more control. That moving average was tested on Tuesday and found willing buyers against the level (see blue line on the chart below).
Last week, there were a few moves below the moving average level, but by and large, the price has been above its 100 moving average for most of the month of August (see blue line in the chart below.
So the price is lower in the USDCAD, BUT if the sellers are to take more control, the price needs to get below the rising 100 hour moving average. Absent that, and the buyers are still winning. The buyers are still in the drivers seat.
For a full technical review, watch the video above.
This article was written by Greg Michalowski at www.forexlive.com. Source