The USDCAD has moved higher this weekend in the process extending above its 200 bar moving average on the 4-hour chart at 1.34187, and then the 38.2% retracement of the move down from the November 2023 high.
The price also broke above its 200-day moving out at 1.34806 and moved to a high for the day at 1.3500. However, buyers could not extend above that natural resistance level. The last three bars on the 4-hour chart have seen the price move above and below that moving average level. The low price extended to 1.3457.
The current price is trading below the 200-day moving average at 1.3471 tilting the intraday bias a little more to the downside. Getting below the broken 38.2% retracement at 1.34523 would be needed to increase the bearish bias and give sellers more confidence.
Conversely, moving back above the 200-day moving average and staying above that moving average would have traders looking toward the 1.35000-the day followed by a swing area going back to and of November early December at 1.3517 ahead of the 50% midpoint of the will down from the November high at 1.35374.
This article was written by Greg Michalowski at www.forexlive.com. Source