Correction in the USDCAD lower stalled ahead of the rising 100 hour MA
The USDCAD pushed to the week’s high at 1.34174 yesterday. The low for the week was on Monday at 1.3136. Yesterday, after pushing to the high, the price did correct lower. The breaking of the upward sloping trend line got the ball rolling.
The pair moved below intraday swing highs from Tuesday and Wednesday (see red numbered circles) in the process at 1.3345, but could not extend toward the 38.2% retracement nor 100 hour moving average (blue line).
Today, the Asian session saw the price bottom near the 1.3345 area. In the early European session, there was a brief push lower, but – once again – the price could not reach the 100 hour moving average (blue line). Sellers turned back to buyers.
The price has just reached a new intraday high at 1.34126. That is still just below the high price from yesterday at 1.34174. Needless to say a break of that level (and staying above) would be needed to solicit more buying.
Taking a look at the daily chart below, on a break a downward sloping trendline cuts across at 1.3439. Above that sits the 100 day moving average at 1.34616 (and moving lower).