USDCAD muddles along to start the trading week. What levels are in play and why today?

To start the trading week, the USDCAD traders tried to push to the downside but found support buyers near the 200 bar moving average on the 4-hour chart at 1.3409. That level is also within a swing area between 1.3398 and 1.3414.

On the top side, the close resistance comes against the 38.2% retracement of the move down from the end of October high at 1.3452 followed by the 200-day moving average at 1.34812. Last week, the price exceeded the 200-day moving average for the first time since December 13, but could not sustain momentum (sellers lined up near the 50% midpoint of the same move lower).

If the price can get back above the 200-day moving average, that would give the buyers more hope for another run toward the 50% midpoint level at 1.35374.

This article was written by Greg Michalowski at Source