Yesterday the low to high trading range was at 30 pips. Today the lower high trading ranges of 31 pips so far
The USDCAD traded in a 30 pips range yesterday. Today the low low to high trading range is higher but only 31 pips. Traders continue to struggle with the next move.
Technically, the rising 100 hour moving average was able to be broken (blue line currently at 1.24387), but the swing high and low area going back to October 12 between 1.24278 and 1.24334, could not. That has given the sellers cause for pause. As a result, the price is back above the 100 hour moving average currently at 1.2447.
With a trading range for the first two days of the week at around 36 or 37 pips, we know there will be more to come - either higher or lower (the high reached 1.24648 yesterday. The low price today reached 1.24277).
Traders looking for more upside - now that the sellers had their intraday shot and missed - could use the moving average/trendline/low for the week as risk defining levels. Getting above 1.24648 would have traders looking toward the 200 day moving average and the 38.2% retracement of the move down from the September 29 high at 1.2473 area. Getting above those levels would be the best recipe for the buyers looking for more upside momentum.
Conversely, four the technical picture start to tilt more to the downside, the 100 hour moving average would first need to be broken with momentum. If that happens, and the 1.24278 is also taken out, the 200 hour moving average at 1.24087 would be the next downside target to get to and through. Below the 200 hour moving average and trading is back within the up and down swing levels that formed the recent cycle bottom (down to 1.2287).
