February 8, 2023

Forex Solution

Learn To Trade Forex

USDCAD trades between 100/200 hour MA goalposts

2 min read


100 hour MA at 1.25163. 200 hour MA at 1.2538 currenly

The USDCAD moved down and then up in trading today. The move to the downside in the Asian session saw the price moved back below its 100 hour moving average (blue line) and return back toward the lows from last week and yesterday around the 1.2472 area. The the price of day reached 1.24778 before restarting a move to the upside again. 

100 hour MA at 1.25163. 200 hour MA at 1.2538 currenly

That move took the price back above its broken 100 hour moving average (currently at 1.25163), but stalled right at its 200 hour moving average (green line in the chart above). That moving average is currently at 1.2539 (and moving lower).  

Sellers have pushed the price back down to retest its 100 hour moving average as traders trade between the “goal posts” defined by the two moving averages.  

In moved back below the 100 hour moving average would look toward the 50% midpoint of the range since the March 18 low. That comes in at 1.25052. Getting below its and the natural support at 1.2500 would have traders looking back toward the swing low from last weekend this week between 1.2471 and 1.2478. Break below that level and it opens up the door for more downside probing.  

Hold the 100 hour moving average and moved back above its 200 hour moving average would break the pattern of sellers against that moving average. Back on Thursday and Friday of last week, the USDCAD highs stalled right against the 200 hour moving average (the same as today’s price action).  A move above would have traders looking toward 1.25573 where the 100 and 200 bar MA on the 4-hour chart are found. 

For now the battle between the goalposts has traders attention as they await the next shove. 

Invest in yourself. See our forex education hub.


Source link

Copyright © All rights reserved. | Newsphere by AF themes.