200 day MA just also in play above
The USDCAD is up retesting its 200 hour moving average at 1.2602. Key technical level for both buyers and sellers.
Looking at the hourly chart, the price moved below that moving average on Wednesday, and retested it yesterday on two separate occasions. Each test found sellers near the level.
The price is now trying to crack through that hourly moving average level, but also has the 200 DAY moving average above it to contend with on further momentum. There is a battle going on.
Helping the bias higher today, is the support against the 50% midpoint of the July trading range. That comes in at 1.25543. The low price stalled right near that level and formed a floor. The lows today were also off the lows from Wednesday and Thursday both near 1.2525. The holding of that floor yesterday gave the buyers some confidence to push higher.
Although off the lows for the week, it will still take a move above the aforementioned 200 bar moving averages to give the dip buyers more comfort and support from a technical perspective. A move above the 200 hour moving average, and 200 day moving averages (the 38.2% retracement of the July ranges also near the 200 day moving average level) would then at target the 100 hour moving average at 1.26483.
For the week, the price last Friday closed at 1.26074. With the current price near 1.2600, it is just below that closing level. Turning into positive territory would also be a positive development.