USDCAD defines the technical support and resistance bookends

The USDCAD fell soon after the higher-than-expected Canadian PPI data, but found support technically near a swing area at 1.3615. The subsequent rise saw the pair move up to test it 200 hour-moving average 1.3649, where sellers leaned. The price rotated modestly to the downside off of that resistance moving average.

What next?

With support holding, and resistance also holding, buyers and sellers will battle it out. Buyers above the 200-hour moving average should increase the bullish bias. Conversely, if that level continues to hold (and it held support on the test on Friday before breaking lower yesterday – so there is history at the level), there could be a rotation lower back down as the trading range dominates near recent lows. .

This article was written by Greg Michalowski at Source