A move below tilts the bias more to the downside again
The USDCAD is trading near session lows and also testing its 100 hour moving average currently at 1.2088 (blue line in the chart below).
The broken 38.2% retracement of the move down from the May 13 high comes in just below that level I.20850. And a swing area between 1.2078 and 1.20832 complete the downside support targets.
That area is key for both buyers and sellers. Hold support and move back above the 200 hour moving average 1.21024, and the intraday bias tilts more in the favor the buyers.
Conversely if the 100 hour moving average is broken, and that is followed by a break of the 38.2% retracement and the swing area, it open the door for more of a bearish run for the pair.
So key test in the the early NA session. Sellers are more in control, with the next hurdles in the way.
PS The buyers had a shot on the brief break above the topside swing area between 1.21299 and 1.21408 (see red numbered circles). However, momentum faded quickly and the buyers have turned to sellers of the last4-5 hourly bars.