USDCAD falls below 100 hour moving average and a short term floor

The USDCAD USD/CAD The USD/CAD is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Canadian dollar of Canada (symbol $ code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed in order to purchase one US dollar. For example, when the USD/CAD is trading at 1.3500, it means 1 US dollar is equivalent to 1.35 Canadian dollars. The US dollar (USD) is the world’s most traded currency, whilst the Canadian dollar (CAD) is the world’s seventh The USD/CAD is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Canadian dollar of Canada (symbol $ code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed in order to purchase one US dollar. For example, when the USD/CAD is trading at 1.3500, it means 1 US dollar is equivalent to 1.35 Canadian dollars. The US dollar (USD) is the world’s most traded currency, whilst the Canadian dollar (CAD) is the world’s seventh Read this Term has broken below its 100 hour moving average (blue line in the chart above) at 1.28133, and also a shorter-term swing low that has formed from lows on Tuesday, Wednesday and again today. That floor comes in at 1.2800 (a nice round number and natural support level Support Level A trading support or support level represents a given price that acts as a temporary barrier for an asset. In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price. Basic support levels can be calculated and charted by identifying the lowest lows for a A trading support or support level represents a given price that acts as a temporary barrier for an asset. In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price. Basic support levels can be calculated and charted by identifying the lowest lows for a Read this Term). The current price is trading at 1.2784.

The 1.2800 level is now close risk as is the 100 hour moving average at 1.28133. Stay below and the sellers remain in control.

On the downside, the next support target comes in at 1.2775 to 1.27796. Below that, the swing low from Tuesday's trade at 1.27653 would be targeted followed by the downward sloping trendline connecting recent lows (see blue numbered circles in the chart above). That trend line cuts across at 1.2744 (and moving lower).

Sellers are making a play after buyers on Tuesday and Wednesday could not get above the 38.2% retracement of the recent trading range from the May 12 high. That retracement came in at 1.2884. The high price yesterday stalled right against that level and started the rotation back to the downside (albeit in a choppy fashion).