The USDCAD has moved below its 100 hour moving average 1.37183. That is not something new. The price on Wednesday, Thursday and Friday of last week all traded below the 100 hour moving average, but could not sustain downside momentum. Can the sellers keep the pressure on today? That is what sellers are hoping for today. If, so there is room to roam on the downside.
On the downside, there is a swing area between 1.3637 and 1.3666. The rising 200 hour moving average is also in play at 1.36336 (green line in the chart above). The last time the pair trade below it its 200 hour moving average was back on September 13 when the price was near 1.30943. Getting and staying below that moving average would next have traders looking toward the 38.2% retracement of the last trend move to the upside near 1.3600.. The low price from last Thursday's trade came in just below that level 1.3597.
