Breaks below floor
The USDCAD has moved below a floor area at 1.3426-287 on the back of BOCs comment (CLICK HERE). That area is now risk for the pair.
The floor was formed from recent lows on the hourly chart. On Friday there was an attempt to move lower after the better than expected Canada jobs report, but the break below the 1.3426-29 area could not muster much momentum. The pair rallied into the close.
Today, the price action was up and down, but the price held below the 100 and 200 hour MAs above (at 1.3476-84).
The fall has taken the price toward the May 25th low at 1.33869. A break below opens the door for further selling.
However, take note that the 100 day MA comes in at 1.33763. The 50% of the move up from the January low also come in at 1.3379. That is a key level folks. There should be buyers on the first test.
The 200 day MA is further down at 1.3327 area if selling starts to accelerate.