You raise your
The USDCAD continued its run to the downside in in the Asian session today, and in the process fell below the 50% midpoint of the move up from the September low to the October high at 1.35813.
However, after reaching a low near 1.3570, the price bounced higher.
What stalled the fall?
The 200 bar moving average on the 4-hour chart gave traders some cause for pause (see green line on the chart below). Looking back in time, that moving average was resistance before breaking higher on September 29 and becoming support before its run to the upside.
The corrective move higher today will back up to a swing area between 1.3600 and 1.36125. The high price reached 1.3616 before rotating back down. Currently, the price is just above the 50% midpoint at 1.35813 on September 29.
So support against the 200 bar moving average on the 4-hour chart near 1.35712 held. Resistance against a top-side swing area at 1.36125 also did a good job of holding on the topside. In between (well nearer the low support) sits the 50% midpoint at 1.35813 level. If the low is in place for now, watch that level for support ahead of the 200 bar MA.
Look for the break outside those ranges with momentum eventually.
