Three tests of the MA line today
The USDCAD has traded in a up and down range today. The earlier session low (and low for the day) did stall just ahead of its 100 hour moving average (blue line) and bounced. The bounce took the price from a low of 1.31297 to the intraday high at 1.31598.
The price has since rotated back to the downside, and in the process has retested the rising 100 hour moving average (currently at 1.31366)on two separate hourly bars. The price is trading at 1.3146 currently.
So, there have been a total of 3 hourly bar tests of the 100 hour MA (see red circles). Each stalled the fall. That increases the moving average levels importance going forward.
Stay above is more bullish. Move below is more bearish.
If it holds, on the topside, the 1.3176 area and the 100 day moving average at 1.31928 are upside targets on more momentum.
Above that area and traders will target the 100 day MA. The 100 day moving average was briefly broken last Wednesday, only to quickly move back down. The high on Friday after the US employment report stalled against that moving average level. Like the successful test of the 100 hour MA, that successful test increases the levels importance. Stay below is bearish. Move above is bullish.
