200 hour MA eyed below now
The USDCAD as such as a cracked below its 100 hour moving averages 1.25417.
The move to the downside comes after the pair consolidated and traded above and below its 200 day moving average over the last two trading days. The pair should have moved higher after breaking back above that key moving average, but kept finding sellers ahead of the swing area between 1.2590 and 1.26074. Ultimately, the buyers gave up and turned to sellers over the last few minutes.
The fall lower now takes the price between the 100 hour moving average above at 1.25417 and the 200 hour moving average below at 1.25145. Traders will be eyeing those levels for clues.
Recall from Friday, the price moved above those two moving averages, tilting the technical bias back to the upside. Yesterday the price corrected down to test the 100 hour moving average, only to find support buyers.
With the break today, the sellers are making the play again. However, the 200 hour moving average break is needed to confirm the more bearish bias. Intraday traders would not want to see a move back above the 100 hour moving average with momentum.