Yesterday at this time, the USDCAD was basing at the 100-bar MA on the 4-hour chart and moving above the 200-bar MA on the same chart. I noted that this price action tilted the technical bias to the upside (see my post by clicking HERE). However, the price couldn’t sustain the upward momentum and fell back below the 200-bar MA (green line currently at 1.3684). This shifted the technical bias to a neutral area between the 100-bar MA at 1.3646 and the 200-bar MA at 1.3684.
Today, the price is back above the 200-bar MA on the 4-hour chart, once again tilting the bias to the upside. Buyers are making another play. The trading decision rule remains: if the price stays above the 200-bar MA at 1.3684, buyers have more control, and upside probing is likely. Conversely, a move back below this level shifts the bias back to neutral.
Overall, the price action reflects uncertainty among buyers and sellers. Trading involves anticipating future moves based on price action and technicals, which currently support a more upside bias. This view can change, but the current indications favor the buyers.
If you have a thought (same or different) or would like me to analyze another financial instrument (it can be anything), please post in the comments.
This article was written by Greg Michalowski at www.forexlive.com. Source