USDCAD tests trend lines and MAs. Sellers more in control.

Technical Analysis

100 hour and 100 day MAs in play along with a trend line

The USDCAD has moved lower today after the earlier day run higher could not sustain momentum above the 200 day MA (at 1.3302). A topside trend line also helped to stall the rally today.

The steps lower from the high today has now taken the price down to a trio of support defined by the:

  • 100 day moving average of 1.32633
  • 100 hour moving average of 1.32579
  • trendline support at 1.32549

The low today reach 1.32557. We currently traded 1.3264.

The correction off of the low price today stalled around a swing high from yesterday at 1.32705. That helps to keep the sellers more in control.  That level was also a swing high from September 16.

Sellers are more in control. The question for this pair of late is “Can the dominant trend stay the dominant trend?”  

There have been a number of moves higher and lower that has seen sharp reversals the other way. 

So watch the is 1.3271 area as a close bias barometer.  A move above should disappoint the sellers looking for more downside.

On a break of the trio support, should solicit more momentum selling with 1.3242, 1.32326, and the 50% retracement of 1.32213 and 200 hour moving average of 1.32175 as downside targets.  
ForexLive

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