Bounces off key MA level
The USDCAD just fell to the 200 day MA level at 1.3105. The low price came in at 1.31052 and the price immediately bounced back higher. We trade at 1.3120. The high price on the bounce reached 1.3126.
Earlier today, the pair got a shove lower on the news that Trump was in favor of the Keystone XL pipeline. That is good news for the Canada natural resource industry. That USDCAD moved sharply lower.
Technically, the pric fell below a cluster of support defined by the 200 hour MA, the 50% retracement and an upward sloping trend line. They all came in the 1.3196 and 1.3202 area. THe break helped to keep the sellers in charge.
Now with the 200 day MA in the way, the selling may have a cause for pause.
Taking a broader view at the daily chart below, the move lower today did fall below an old trend line level and also pushed away from the 100 day MA line. Back in December, the 200 day MA was tested and held. In January, that MA has been broken two other times. The first one failed on the day while the second break closed lower one day, but that was it. So there has not been much activity below that MA line. Getting below will be the third break. Key level.
On a rebound, close resistance now comes in at 1.31437. That is the 50% of the last level lower today(see 5- minute chart below). It also is near a swing low in trading today.
