December 9, 2022

Forex Solution

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USDCAD trades to a new session low and looks to test last week’s floor

1 min read

Price remains below the 100 and 200 hour moving averages and topside swing area

The USDCAD is trading to a new session low and in the process is looking to test the low floor from last week near 1.2525.  A move below that level would open the door for further downside momentum with the 61.8% retracement of the July trading range 1.24948 as the next target.

Price remains below the 100 and 200 hour moving averages and topside swing area_

The high prices today did stall near a swing area between 1.2590 and 1.2607. The high price reached 1.25899 and then 1.25876 (in the North American session) before rotating lower. The price also stayed comfortably below the overhead 100 and 200 hour moving averages, AND with the 200 day moving average near 1.2613 (see blue and green lines in the chart above).  It would ultimately take a move above those moving averages to shift the bias more to the upside. Until then, sellers are more control. The low price has now reached 1.25344. 

Going forward, watch the 50% midpoint at 1.25543 as a close intraday resistance.  Stay below keeps the sellers firmly in control. Earlier today the price did move below that midpoint level only to fail and rotate back to the upside. Can the second break now keep the momentum to the downside in motion?

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