The USDCAD got off a great start, raced around the track and took the checkered flag! Yahoo.
USDCAD takes the checkered flag.
In trading terminology…..
The USDCAD fell below the 100 hour MA in the early Asian session and tumbled 91 pips lower. The price decline pushed below the 200 hour MA (green line) and 38.2% retracement. The price then started a recovery, which just finished (at least temporarily) when the price touched the 100 hour MA (at 1.1162) – around 91 pips from the low. The pair completed a full lap and took the checkered flag. Ninety one pips down and then 91 pips back up from whence it started. Oh Joy.
USDCAD completes the full lap on break of 100 hour MA and rebound back up to the 100 hour MA
The 200 hour MA is at 1.1133. The 100 hour MA is 1.1162. The pair is between the “goal posts” defined by the two moving averages and traders are confused, dazed perhaps and waiting for the next clue from a break either above the 100 hour MA or below the 200 hour MA.
I don’t love when the price action does this. It is indicative of a market that does not know what it wants to do. Look for buyers against the 200 hour MA below now that the sellers showed their hand at the topside resistance. On a break, look for momentum.
