100/200 hour MAs stall rallies
The USDCAD is rebounding from the lows from yesterday which saw the price moved down to 1.25437. The push higher took the price above the 100 hour moving average in the European morning session, but could not extend above the 200 hour moving average (green line) currently at 1.26538.
After a rotation back to the downside, the price has once again pushed above the 100 hour moving average only to find sellers for the second time today. The current price is trading back below its 100 hour moving average at 1.2631. The price is trading at 1.2617 as I type.
Going forward, as long as the price can remain below the moving averages, the sellers remain more in control.
Having said that, there are a number of swing areas that would need to be broken to increase the bearish bias (see yellow areas in the chart above). All those areas were broken on Monday and again on Tuesday, but momentum stalled and the price rotated back higher.