The USDCAD moved to a new low going back to September 2022, and in the process sniffed the 50% midpoint of the move up from the October 2021 low. The level comes in a 1.3132. The low price came in at 1.3137 and has seen a bounce back up toward 1.3154 currently.
Drilling to the hourly chart below, the corrective high off the low has found some resistance against the swing lows from Friday and Monday near 1.3178. The high price just reached 1.31788 and rotated back down.
In the short term, getting above 1.3178, and then the falling 100-hour moving average (blue line on the chart below) currently at 1.32815 (and staying above that level) would give buyers some added hope/confidence.
Having said that, the moves above the 100-hour moving average going back to June 12 have not had much success (see the red-shaded area on the chart below). The price has also not been able to get above its 200-hour moving average currently at 1.32542 and moving lower.
The USDCAD reached a target on the daily chart (or close to it), but the sellers are still more in control of the hourly chart. Watching the 1.31778 and the 100-hour moving average at 1.32015 for short-term clues. If the price cannot get above those levels, the buyers are not winning. The sellers are still in firm control.
To watch the video and learn, click below.
This article was written by Greg Michalowski at www.forexlive.com. Source