Technical Analysis

USDCAD stalls ahead of the 100 day MA/61.8% retracement

Stall area against the MA level

The USDCAD stalled yesterday and today near the 100 day MA (blue overlay line at 1.3059).  The price has moved above that level but momentum slowed. Profit takers/sellers seem to be leaning – at least on the first test (which tends to be a normal reaction).  

Having said that, the pair is not running lower either.. The low reached 1.3024. There is a support area at 1.3003-14 area (see yellow area in the chart above). The 50% and swing levels come in that area.  

We trade more toward the high resistance vs. the low support in up and down trading day.  

Does that lead to another test of the highs?  

If stocks start to move back lower and picks up steam, the 100 day MA should be tested again as “risk-off” flow tend to sell the CAD (and the AUD and NZD which are not really selling off today, but who knows….).  In any case that 100 day MA will be a key barometer for both the buyers and the sellers technically, how ever the news and other markets decide to go….

ForexLive

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