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 www.forexlive.com. Source