Yesterday a bounce. Today a modest bounce, but retesting
The 100 hour MA on the USDCAD chart is snaking higher and lower around the 1.1350-60 area over the last few trading day. On Thursday and Friday of last week, the market did not know what it wanted to do as the price chopped above and below the MA (blue line) with no pattern, direction or conviction.. Uncertainty prevailed.
The price eventually moved back higher. Yesterday, the price tested the moving average level and move higher. Today, there was another test, a modest bounce, and now the market is back down retesting the 100 hour moving average level. WTI crude is up 0.88% in trading today, helping to contribute to the softer tone in the pair (stronger tone for the CAD).
The market has a decision to make. What we know is traders can define and limit their risk against the level. If the market does bounce a move back above the 200 hour MA will be eyed. ON a move lower the 1.3051 will be the next level get and stay below. The 1.3042-51 level was a bunch of swing highs and lows going back to July 24th