USDCAD is still higher on the day
The USDCAD has moved down from a recent swing high area in the 1.3314-198 area. The dip has taken the price back down to the 100 hour MA and the 100 day MA at 1.32878 level. The 50% midpoint of the move down from the August 20 high comes in at 1.3284. It will take a move back below that level to swing the bias more down again.
Needless to say, looking at the hourly chart above, the price action in the pair is up and down and up and down again.
In between sits moving averages including the 100 hour and 100 day MA, along with the 200 hour and 200 day MAs. Most of the time the price action has not really cared about those MA (although it is doing so today). That's what happens when the market non-trends.
So what can you do in non trending markets?
- Be patient for extremes
The 1.3314-188 is one above. The 1.3338 is another on the topside.
On the downside, the 1.3237-769 area is one and the 1.3249 level is another.
As traders, in a non trending market, you define the levels, and pick your spots. Try to get as close to the levels as possible for trade opportunities. You might get lucky and pick a high or low and ride it down or up for some pips. If wrong, get out.
SUMMARY. In non trends like the USDCAD, be patient. Let the market come to your spot, then act with defined and limited risk. If it works, it works. If it doesn't get out.
PS. at some point, you will get a break. Yesterday it seemed that was happening so you have to go with the break. However, if it fails, get out and even think about the tide turning the other way. That is what happened yesterday as well.
