The USDCAD is moving to a new session low as dollar selling becomes more dominant across the major currencies.
The pair is back down testing its 200 hour moving average (green line in the chart above. Last Monday, the price stalled just ahead of that moving average level near 1.3581, and spent the rest the week rallying higher. On Friday the high price was reach 1.38589 up about 280 pips, before rotating back down and closing near 1.3820 on Friday.
In trading today, there have been moves lower and higher and back down again.
Now, with the 200 hour moving average being retested, will the buyers come in against the risk defining level and push the price back higher?
If so, traders will look toward a move back above the swing low in the Asian session at 1.3709 to give the dip buyers some short-term comfort. Above that and traders would look toward 1.37425. That was the swing lows from last Wednesday.
Conversely a break below the 200 hour moving average should solicit more selling momentum. Traders will then look toward 1.3657 to 1.3665 area as the next target area. That level corresponds with swing highs going back to February 24, March 1. On March 7 (last Tuesday), the price moved above that area, and momentum turned sharply to the upside for the rest of the trading week.
