100 hour MA at 1.24889
The USDCAD has extended to a new session high and in the process, has moved to test the 100 hour MA at 1.24889. So far sellers have leaned against the level.
The move to the upside today comes after the pair made a new low late yesterday and early in the session today. Those lows were the lowest since early February 2018. The inability to extend the low further, led to the pair moving back above a downward sloping trend line. That gave buyers more confidence for further upside probing.
Having said that, getting back above the 100 hour MA is key if the buyers are to start taking back control from the sellers in the short term. There is still a long way to go, however, for buyers. The high for the week stalled at 1.2500 (from Monday) and would be the next key target to get to and through.
Recall on Friday, the Canada job gains surprised to the upside as did the fall in the unemployment rate. The price of the USDCAD fell sharply but has been chopping up and down since then between 1.2434 and 1.2500. The calm before a move back to the downside? Or, will the buyers probe the upside more and put some pressure on the shorts.
