Swing area at 1.30989 to 1.31083 is closer support ahead of October 21 low at 1.30804.
The USDCAD has moved down about 265 pips since opening for trading on Monday. The run lower first cracked below the 100 day MA up at 1.33210 and then the 100 hour MA (currently at 1.32851).
Those breaks opened the door for increased selling momentum, which has continued today with the run from the 200 hour MA (green line at 1.32277), the move blow the upward sloping trend line at 1.3200 area.
The selling did not stall until hitting a swing area between 1.30989 and 1.31083 (see blue numbered circles). That area was ahead of the October 21 low but has been home to a number of swing levels (see blue circles).
The last few hours has seen a snap back rally which has taken the price away from the extreme.
If the low is in place for now, the 1.31962 to 1.32061 area (see green numbered circles) would be an upside target/barometer for the future roadmap. Get above and then the 200 hour MA at 1.32277 and the buyers assume more control from the sellers. Stay below and the snapback rally is just a normal corrective move to resistance.
On the downside, the aforementioned swing area around the 1.3100 area followed by the October 21 low of 1.30804 are the obvious targets to get to and through on dollar selling.
Drilling to the 5 minutes chart below, the pair's snapback rally has pushed up toward its 200 bar moving average at 1.31741. The price has not been above that moving average level since yesterday's early London morning session. Get above would also be a step in the bullish direction intraday at least, and have traders looking toward the 1.3200 area.
Stay below however, and sellers could easily return and push the price back lower. Key intraday level..
