The price moved away from the 100 day MA yesterday
Yesterday, the USDCAD fell below its 100 day moving average (blue line in the chart below) and ran to the downside (see post from yesterday
). The price today has extended that run and in the process has started to ship away at a price gap between 1.34599 and 1.35169. The low price for the day reached 1.34833.
That lower gap level is also joined by the rising 200 day moving average (green line), making the level a dual support target.
The low today found early buyers against that level. I can’t say that getting within 23 pips is a strong test, but let’s say it sniffed the key dual support target.
Drilling to the 5 hour chart below, the trend move to the downside of the last few days has been able to mostly stay below the 200 bar moving average (green line in the chart below). That level currently comes in at 1.35298. A move above that level would represents a step in the bullish direction for the dip buyers. Failure to get above that level, however, keeps the sellers firmly in control.
The pair is currently testing a downward sloping trendline and the 100 bar moving average (blue line in the chart below). Although getting above level would be positive for the buyers, the 200 bar moving averages more important.