The upper trendline blocks the rally
The USDCAD is again testing – and now falling below – its current 200-hour moving average at 1.26131. The low just hit 1.26098 on the hourly chart above.
Yesterday and earlier today, the price of the USDCAD pair fell below this MA, but could not stay below, indicating uncertainty in the market for pair bias.
However, the uptrend today stopped just before its uptrend line. It helped keep the bears in play.
Price fell from Friday’s high at 1.27444 and is working on its third day of decline of the week. USDCAD closed yesterday at 1.2636.
With the price now below its 200 hour moving average, traders will look to a break out of the 50% retracement of the move up from the Fed 25 low. That level comes to 1.26057. Below that, a trader would target the day’s low at 1.25917.