Finds support at a cluster of support Breaks below cluster of support
The USDCAD is back down today, on the back of higher oil prices. Weaker US data is not helping. The pair is currently testing a cluster of support with the 100 and 200 hour moving average (blue and green lines), trendline support, and the broken 38.2% retracement of the move down from the January 30 high to the February 3 low (see chart below).
Traders have been leaning against this level over the last 6 or so hours. However, corrections have not been able to get back above the 50% retracement at the 1.2573 level. This level was also near the lows from yesterday's trade (see chart above).
The USDCAD has had its share of ups and downs as it follows the oil swings. As such, traders need to be flexible, trade against key levels. Look for failures of breaks (there was a nice one at the highs yesterday), and don't fall in love with the bias - simply like it. Your libel to not feel the same way tomorrow.
PS the support is being broken now....What was support now becomes resistance.