The USDCAD has stepped consistently lower in the European and early North American session after consolidating just below topside resistance between 1.4060 and 1.40668.
On the run to the downside, the price fell below the
- Broken 38.2% retracement of the move up from the end of October low to the November high at 1.40433
- The 200 hour moving average at 1.40377
- The 100 hour moving average at 1.40239
- The 50% midpoint of the same trading range at 1.40135
The price is now retesting a key swing area between 1.4000 and 1.40077. That becomes the next target area to get to and through to continue the pressure on the buyers and add to the sellers control.
What would threatened the sellers now?
The close risk is a 50% midpoint at 1.40135. More conservative risk would be the 100 hour moving average at 1.40239. Stay below above those levels the sellers in play/in control technically.
For the dip buyers on the weakness, could lean against the 1.4000 level and hope for a rebound back above the aforementioned levels.
Sellers have been in firm control over the last 6 or so hours of trading and putting pressure on the buyers.
It is up to the buyers to show that they can take back control.
