The 200 day MA is down at 1.32741
The USDCAD moved to the highest level since October 10 in trading today - extending the range after the more dovish comments from BOCs Wilkins yesterday.
In the process, the price moved above a topside trend line today on the 4-hour chart at 1.3300 currently (nice round number). The break led to more buying to the high at 1.3314 but that break has now failed. Does the failure turn the buyers to sellers? Do we see more selling?
What would give the sellers on the faillure more confidence is if the price can now move back below the 200 day MA at 1.32741. Earlier today, the price was able to break above that MA (more bullish). If the price moves back below, and then below the high from last week at 1.32698, the sellers will take more control.
For now, look for sellers to lean against the old topside trend line at 1.3300 level with stops on a break above, and look for potential buyers against the 200 day MA with stops on a break below the high from last week at 1.32698. That is the most logical technical story now.
