Price lower on the day
The USDCAD has moved into the red after being up modestly earlier in the day. The price action today stalled the rally just under the 100 hour MA (sellers were leaning against the MA level). The price decline from the peak, has now moved below the 200 hour MA (green line) at 1.30993.
The sellers are trying to take more control, with the price below both the 100 hour MA AND the 200 hour MA.
If the price can keep under those MAs (close risk for shorts being the 200 hour MA), the 100 day MA at 1.3072 and the 100 bar MA on the 4-hour chart down at 1.30690-72 becomes the next key targets.
In last week’s trading, those MAs were both broken on Friday, but that break failed after the better than expected employment report in the US. On a test, I would expect buyers.
If the price cannot keep under the MAs, the sellers turn to buyers back above the 100 hour MA.