NAFTA headlines could impact
The USDCAD raced up toward the 200 hour MA and the 50% retracement earlier in the session. But the technical levels, attracted risk defining sellers. The price rotated back lower.
The fall took the price to the 100 hour MA (currently at 1.3041). The low reached 1.3038. Like at the highs (and the 200 hour MA/50%), the risk defining level attracted action. This time the buyers have come in.
We currently trade (as I type) at 1.3052 - off the support level.
Traders have defined the range using technical levels. The dip buyers want to see the price stay above the 100 hour MA. The rally sellers are happy below the 200 hour MA/50% retracement.
The range is defined - for now at least. Going forward with NAFTA headlines a possibility, they may ultimately lead to the push one way or the other.