USDCAD corrects lower today but does find support buyers at the 200 day MA. What next?

The USDCAD moved sharply higher yesterday after the Bank of Canada interest rate decision. The price moved up toward the high price of last week at 1.35411, but fell short of that target. The subsequent move to the downside today took the price back down toward its 200 day moving average at 1.3483. Other moving averages come in at 1.3472 and 1.34705.

Holding the 200-day moving average, has given buyers some hope, and the price has rotated to the upside. What next?

If the buyers are to take more control, getting about 1.3517, in the high from last week at 1.3541 would increase the bullish bias and after looking toward the 100-day moving average at 1.35669 (see chart below).

Conversely I move back below the 200-day moving average would disappoint the buyers, it could lead to additional downside momentum if the 200-hour moving average at 1.3472, and the 100-hour MA at 1.34702 can be broken. THose breaks would put the sellers in the driver’s seat from a technical perspective.

This article was written by Greg Michalowski at Source