December 7, 2022

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USDCAD bounces off lows

1 min read

The price is back above a swing area between 1.2487 and 1.2492

The price is back above a swing area between 1.2487 and 1.2492_
The USDCAD has been moving/trending to the downside today. 

On the moved lower, the price cracked back below its 200 and 100 hour moving averages (green blue lines). 

Recall from Tuesday, the price moved above the 200 hour moving average (green line) for the first time since July 21. 

Yesterday the price tried to dip below that moving average line on a few occasions but failed. 

Today the break found more sellers which extended the price below the 100 hour moving average and also a swing area between 1.2487 and 1.2492. The low price extended to 1.24739, but has since rebounded modestly, trading back above the aforementioned swing area. If the buyers are to continue, they would need to get back above the 100/200 hour moving averages to shift the bias more in favor of the buyers once again. Failure to do that and the sellers are more control.

So watch the swing low level at 1.24873. If it can hold support, perhaps a rotation back to the upside is in order. If the level is broken, however, traders may give up on the “buy the failed break” play. 
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