Forex technical analysis: USDCAD back up testing the old floor area

Moves above 100 bar MA on 4-hour chart

The USDCAD has been using the 100 bar moving Arizona four hour chart as resistance today. Not anymore. The price just broke above the 1.31128 level and moved up to what was an old floor area (see lower yellow area) between 1.31279 and 1.31465. This area has no fewer than nine swing lows/highs going back to mid September. Yesterday, the pair broke below that level, tested the line (at blue circle 9) and accelerated lower. The low reached the 50% of the move up from the September 7 low at the 1.3050 level and stalled. That was a good level to stall.

Now, if the selloff yesterday is to keep the bearish bias, sellers should put a lid on the pair at the 1.3146 area. If not, the waters are muddy again for the pair.

Key test.