The USDCAD made new lows for the week earlier today and in the process tested a swing area between 1.3401 and 1.34214. The low price reached 1.34154 bouncing higher.
The last 4 or so hours have seen a sharp move back to the upside helped by declining oil prices.
The move higher has taken the price of the USDCAD above its 100-bar moving average (blue line on the chart below) on the 4-hour chart at 1.35195, and toward the 200-bar moving average on the 4-hour chart at 1.35413 (green line on the chart below). On Wednesday, the price highs for the day (and for the week as well) stalled against those converged moving average levels.
Going forward, if the buyers are to take more control, they would need to get above the higher 200-bar moving average at 1.35413.
Conversely, sellers could lean here against the 200-bar moving average, and push the price back below the 100-bar moving average at 1.35195. That would put sellers more in control again.
So KEY resistance is currently being tested. That resistance will help determine a more bullish, or more bearish bias for this currency pair going into the end of the week and into the new trading week Be aware. Be prepared.
This article was written by Greg Michalowski at www.forexlive.com. Source