USDCAD looks to retrace the down move today


A few pips short of lap down and up

The USDJPY moved lower in the Asian and in the North American session. In the process tested the low of Monday trading at 1.20562. The low price today reached 1.20556, just below that low.

A few pips short of lap down and up

The inability to extend the disadvantageous momentum has led to sellers returning to buyers. The price then moved back above its 200-hour moving average at 1.20777, testing the 100-hour moving average at 1.20935, before crossing that level during the last hour of trading and running to the highest for the day at 1.2116. That high was just below yesterday’s high at 1.21167.

The thing is, the rotation to the downside of yesterday (and today’s earlier high) has almost fully recovered.

The question now for traders about a focus of risk is “Is the high stable rising and the price turning lower?” or “Do we see a move to and through the high and continue the momentum to last week’s swing high at 1.21323 (and another swing high between 1.21355 and 1.21437).

The Bank of Canada Rates were unchanged earlier today as expected and said they will maintain a current level of policy rate until an inflation target is sustainably reached. They will also continue quantitative easing.

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