The USDCAD has broken below its 100 hour moving average (blue line in the chart above) at 1.28133, and also a shorter-term swing low that has formed from lows on Tuesday, Wednesday and again today. That floor comes in at 1.2800 (a nice round number and natural support level ). The current price is trading at 1.2784.
The 1.2800 level is now close risk as is the 100 hour moving average at 1.28133. Stay below and the sellers remain in control.
On the downside, the next support target comes in at 1.2775 to 1.27796. Below that, the swing low from Tuesday's trade at 1.27653 would be targeted followed by the downward sloping trendline connecting recent lows (see blue numbered circles in the chart above). That trend line cuts across at 1.2744 (and moving lower).
Sellers are making a play after buyers on Tuesday and Wednesday could not get above the 38.2% retracement of the recent trading range from the May 12 high. That retracement came in at 1.2884. The high price yesterday stalled right against that level and started the rotation back to the downside (albeit in a choppy fashion).
