The 100 and 200 hour MA broken earlier
The USDCAD has raced up to the test the 50% retracement and backed off . That level came in at 1.42935. The high price reached 1.42975 but could not sustain momentum.
Earlier in the day (in the Asian session), the price initially moved lower and in the process, moved below its 100 hour moving average (blue line in the chart above). However, after breaking back above the 100 hour moving average in the North American session, the price based against that moving average before moving up to – and through- its 200 hour moving average at 1.42231. That 200 hour moving average is a risk level for longs looking for more upside. Stay above, and the buyers remain in control.
Yesterday and again on Tuesday, the price moved above the 200 hour MA, but ultimately failed on those breaks. Today is the 3rd break this week. If the buyers are to take control, they need to stay above that level. Look for buyers to buy against that level.
