Sellers run out of steam and buyers step in
The USDCAD has tested and bounced off its 100 hour moving average currently at 1.41143. In an earlier post today, I commented about the level (and lower trend line) :
A break of each of those levels and staying below would be needed to give sellers more confidence. The last 2 tests of the 100 hour moving average on April 17 and again on April 20 did extend below the moving average line, but only briefly before rebounding back to the upside. So the level will be key today and going forward for both buyers and the sellers..
The level was key for both buyers and sellers. The buyers overwhelmed the sellers at the key support level. The price moved higher.
Going forward, the holding of the level increases the importance of the MA going forward. Keep that in mind. Although the 1st test found buyers, a subsequent break would still be more bearish.
The dip buyers now would like to see the price get back above the 1.4175-814 area. That was the swing high from April 16 and again on April 21 before breaking to the upside. Admittedly both yesterday and today the price moved below those levels and rebounded each time. However at red circle 3, the area held resistance and the price move lower. A move above would take the price back into the upper extreme area.
Crude oil prices are still higher by $3.50 or 30% at $15.04. but also off the session high at $16.18..
