The 100 and 200 hour MA is now a risk defining ceiling for the USDCAD
The USDCAD corrected higher on Thursday of last week and in the process moved up to test the 50% midpoint of the move down from the September 30 high. That level comes in at 1.3259 and that is where the price stalled.
The wander lower has now taken the price back below the 200/100 hour MAs (green and blue lines) at 1.3177 and 1.3174 respectively. Staying below those levels keeps the sellers more in control.
On the downside, the pair moved below a swing area at 1.31567 to 1.31622 but stalled ahead of a lower swing area at 1.31389 to 1.31465. Getting below each puts the pair solidly in the "extreme" low area down to to the October low target at 1.30986 (call it 1.3100). The price waffled up and down from Monday to Wednesday between 1.30986 to 1.31622 (64 pips) before racing higher on Thursday.
SUMMARY: For traders, stay below the 200/100 hour MA is more bearish technically (below 1.3177). Get below 1.31389 and a run toward the lows (and 1.3100) would be eyed. Sellers more in control for now at least.
