Forex technical analysis: USDCAD dips below 100 day MA

Technical Analysis

Author: Greg Michalowski | forex-technical-analysis

Can the price stay below the MA level

The USDCAD has moved below the 100 day MA today at 1.26031.  The low reached 1.2579 on the break. 

The price has moved back up toward the MA line and retesting.  Can the price stay below and keep the bears in control?  That is what traders/shorts will be eyeing now.

Staying below and getting back below the 38.2% at 1.25919 opens the door for further declines. There is not much in the way of support until the 1.2538 trend line and swing high from early October.  The 50% of the move up from the September low comes in at 1.24906. 

A move back above the 100 day MA and then the December low at 1.26168, will negate the bearish break. I would expect more shorts to cover.