Trades between 38.2% and the MA of 200 hours
The USDCAD oscillates between its 200 hour MA below at 1.3400 and the 38.2% of the July 20 decline above at 1.34330. The highest price today is 1.34352. Today’s low hit 1.3404. We are currently trading between the levels at 1.3424 and waiting for the next push.
Yesterday the pair moved above the 100 hour moving average – no big deal – but had some anxiety around the 200 hour moving average (green line). The buyers won this battle and the price tightened towards the 50% retracement of the downward movement from the July 20 high at 1.34647. The high price stalled at 1.34588 before this level.
Since then, the pair has climbed in both bullish and bearish trading. However, that troublesome 200 hour moving average was a pretty solid level of support. Staying on top gives buyers some comfort for a more positive inquiry. However, a return below should see that confidence on the road, with the 100 hour moving average at 1.3382 being the next target.