Choppy up and down action this week.
USDCAD is trading near weekly lows at 1.3033. The low hit a New York and daily low at 1.30384. The current price is at 1.30497 zone. This level represents the midpoint of 50% of the range since November 9.
Looking at the hourly chart above, the pair traded high for the first hour of trading on Monday at 1.3134. However, the area 1.31157-1.31235 (see green numbered circles) blocked rallies on Monday, Tuesday, Wednesday and Thursday.
Today, the 100 hour MA falling to 1.3089 stalled the rally at the start of the Asian session (this MA is now at 1.3080 – see blue line in chart above). The 200 hour MA is near this level at 1.30834. Staying below these levels for most of the day today has kept sellers in control
Like other pairs (see previous technical articles today), the bias may be smaller, but due to the upward and downward nature of the current market price action, there remain barriers to the decline which can either maintain support (and lead to a rebound). or be broken. The 1.30258-1.30333 area is that support area now. This area should be broken down to solicit more sales.
The sellers against the 100 hour MA therefore took advantage today which gave the pair a negative bias (and the 100 hour MA and 200 hour MA remain resistance). However, to move further downward, the target support must be broken. This bracket can easily block drops and lead to a higher corrective movement towards AMs. Choose your poison, but stick to the levels. They help define risk.