USDCAD holding near 100 hour moving average

The  USDCAD  has dipped modestly on the higher CPI  inflation  and in the process took a peek below the 100 hour MA at 1.29683. The low price reached 1.2963, but has already moved back toward the pre-release level of 1.2978.

Earlier today in the early Asian session, the price dipped to a low of 1.2910 which got within about 11 pips of the rising 200 hour moving average at the time. Buyers push the price higher and back above the 100 hour moving average. Recall from yesterday also in the Asian session the price dipped below the 100 hour moving average, and stayed below that level for the rest of the trading day (see blue line).

Now the pattern is reversed with the 100 hour moving average seemingly as a support buying area. Although the price moved below off the data, the buyers quickly returned.

What next?

The high price from last Wednesday reached 1.29951. The high price today reached 1.29957 just above that level before rotating back to the downside. Getting back above that level – and staying above – would be needed to increase the bullish bias. Trade more comfortably higher would have traders looking toward the 1.30368 – 1.30515 area (see red numbered circles and yellow area). The high price from last week nearly match the high price going back to May at 1.30782. The double top remains in obvious upside resistance area that would need to be broken as well.

On the downside, a move back below the 100 hour moving average at 1.29683 (and staying below) is needed to tilt the bias back to the downside. Below that level, and the rising 200 hour moving average green line in the chart above) comes in at 1.29213. Again that level was sniffed early in the Asian session, but found dip buyers willing to lean, with stops likely on a break below.

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