The USDCAD has chopped lower in trading today. The move to the downside comes after yesterday’s run higher stall against the holy of a swing area between 1.3397 and 1.34144.
However, today’s low found the support buyers against its rising 100-hour moving average. That moving average comes in at 1.3367.
If the dollar weakens going forward, getting and staying below that 100-hour moving average would be needed to increase the bearish bias.
Conversely, holding above that 100-hour MA level and extending back above the 50% midpoint of the move down from the December high at 1.3397 would give the buyers the go-ahead to revisit the high of the swing area at 1.3414. Get above it, and the door opens for more upside momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source