Traders eyeing the broken 200 day MA as resistance.
The USDCAD has been stepping down, with progressively lower levels (see the chart above of the BREAKS).
If you caught Adam on BNN last week (or saw the interview posted), he spoke about a higher CAD. He said the CAD should be higher by 2 cents. The CAD is now higher by 2+ cents from that time. Nice call Adam. Below is that conversation....
What now?
From a technical perspective, the price moved below the 200 day MA yesterday as well a downward sloping trend line. Those breaks are the latest and come in at 1.2615-299. Staying below is more bearish. Move above, takes some of the bearishness out the market.
On the downside, the next target comes in at 1.25812. That is the 61.8% of the move up from the January 31 low. A move below that level is another break that traders can use to further define the downward trend.
So the move higher in CAD continues. Does it remain that way? The technicals will help to define that bias with the 200 day MA a key topside ceiling to stay below now.
