Back into the meat of the September trading
The USDCAD fell below trend line support and the 100 hour MA (blue line in the chart below) yesterday and that was a catalyst for a fairly decent corrective move in the USDCAD to the downside.
In addition to taking out the trend line and 100 hour MA, the price was able to take out the 200 hour moving average (green line in the chart above). The USDCAD had traded above the 200 hour moving average since September 22.
It then took out the 38.2% retracement of the move up from the September 18 low at 1.32832, and the 50% retracement of the same move higher at 1.32309.
The pair did finally stall near the 1.32184 area. This was a swing lows going back to September 22. ON that day, the USDCAD bounced off of the 200 hour moving average and was the technical catalyst for the next trend leg higher for the pair that took it to the multi year high at 1.34559.
Having found a stall area, we are now seeing a rebound higher.
Looking at the 5 minute chart, the pair is testing the 100 bar moving average (blue line in the chart below). Earlier today, this moving average held resistance (there was one earlier attempt that breached the line , but failed). The 38.2% retracement of the trading days range comes in near that level as well at the 1.32587 level. This is a test for the buyers to see if they can turn the tide back to the upside for this pair. If they cannot get and stay above this level, the buyers will likely turn the car around and we should see another look at the earlier support level.
