200 day moving average has held resistance since July 21.
The USDCAD has moved up to test its 200 day moving average at 1.25823 area (upper green line in the chart below).
Looking back to July 21, the price moved below that moving average on that day, and has been able to stay below since that time.
The swing highs from July 23, July 27 and July 28 all approached that moving average line, only to find sellers leaning against the level. Risk was defined. Risk was limited.
For today, the same pattern has so far held true. The high price just reached 1.25801 just below the moving average of 1.25823. The current price trade at 1.25679.
Watch 1.25623 as close support. That was the swing high from Wednesday’s trade. Stay above and the buyers remain in firm control, and the market can look forward to a run to -and above – the key day MA level.