The USDCAD moved up to test the 100 hour MA earlier today and found sellers. The price moved down to a swing area between 1.33867 and 1.3400. The low reached 1.34049, just above the low of the area.
The price has moved back higher and once again tested the 100 hour moving average. That moving average is currently at 1.34706. The high price just reached 1.34701 and backed off once again. The current price is at 1.3451.
With the level now holding twice, increases the levels importance (it actually held yesterday afternoon as well). The problem is the sellers are not exactly running away to the downside, but they are keeping control below the moving average level.
On the downside, would now take another move back below the 200 hour moving average at 1.34252. Admittedly the price is not been that reactive to that moving average today. Nevertheless, getting below it would increase the bearish bias. Below that and traders once again look toward the 1.3400 level down to 1.33867 (then the 61.8% at 1.33851). If sellers start to chip away at those levels, the buyers will become more and more frustrated and could join in the selling momentum.