USDCAD moves back toward falling 100 hour MA

0
134

USDCAD 100 hour MA at 1.2382

The USDCAD moved lower in the Asian session and traded at a new low price back to July at 1.23105.

USDCAD 100 hour MA at 1.2382_

That low reached eight pips from the July low price at 1.2302 (see daily chart below). The price bounced higher than that target level.

The move to the top raised the price on the hourly chart at 1.23736 (the price is back from that level). That high works to the falling 100-hour moving average at 1.2382 currently. The 100-hour MA is a key hurdle to overcome if buyers are to dominate more.

The USDCAD tested that moving average yesterday and found sellers against it (of course at a higher level). Moving above the 100-hour moving average would give buyers some confidence, yet it would still be the first step in a possible corrective move back to the top. The last time the price traded above its 100-hour moving average returned on October 6, but the momentum above that moving average could not last long.

During a break above the 100-hour moving average, the next target would come at 1.24039 (50% of the most recent move lower), 1.2426 and the falling 200 hour moving average currently at 1.24377 (and will move lower).

Keeping below the 100-hour MA (and sellers currently pushing back the price) would keep the sellers tightly in check. A move below Friday’s low at 1.23353 would give the shorts / sellers more confidence to run to the July low at 1.2302 (see daily chart below).

USDCAD in the daily chart

Invest in yourself. See our forex education center.

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here