100 day MA and trend line below. 100 hour MA above
There is some recent NAFTA comments that is helping to strengthen the CAD a bit (see post here).
Looking at the hourly chart below, the price is trading right around the 1.3000 level and sits between support below against a lower trend line. That trend line was tested earlier in the North American session, but could not break below. The line comes in at 1.2969 (and moving lower).
Also near that lower trend line is the 100 day MA. That currently comes in at 1.29609.
That area is a key support target on the downside.
On the upside, recall from yesterday, the 100 hour MA was broken but failed. It later found sellers against the level as the buyers turned to sellers. That MA continues to be filed away as a key barometer for bulls/bears. Stay below is more bearish. Move above is more bullish.
So we trade in the middle with key support below defined by a well tested trend line and the 100 day MA, and key resistance defined by the 100 hour MA. Sellers are trying to keep control of the move lower but do face a stiff test below.
Below is the look of the price action and recent move lower on the daily chart...The price moved above the 100 day MA back in April. Since then, the price has not traded below the MA level. As a result, I would expect the MA line as a tough nut to crack on the first look.
