Price moved higher....Back lower
Today, the USDCAD moved sharply into the NY session opening. The price was buoyed by risk off flows as stocks were getting hit in Europe and oil prices were lower.
The price moved to session highs that tested a trend line resistance line on the daily chart (see chart below) and the move higher stalled. Helping the reversal lower was an unwinding of the things that pushed the pair higher in the first place.
- Stocks reversed early declines.
- Crude oil futures also started to recover and move higher and
- the dollar overall started to loose it's shine as FOMCs Brainard was more dovish.
So down the pair goes.
Now the price decline has stalled for the time being at least, just before the low for the day at 1.3029. That may be traders leaning against the "full lap" level. There is better support lower, however against the 38.2% of the move up from last weeks low, lower channel trend line support and the 100 bar MA on the 4-hour chart which comes in at the nice round 1.3000 level (1.3000 to 1.3012 currently). A break of that level should accelerate a decline, with the focus on the 100 day MA at the 1.2950 level now and below that the lower trend line on the daily that cuts across at 1.2840 currently. The beat goes on between the trend line extremes (see daily chart).
If there is a trading correction now off of the lows, look for sellers to enter in against the 1.3057-60 area(see chart below). I would expect that traders will lean in this area.
