Awaits the next shove
The USDCAD got with 16-20 pips of the 200 day MA on Tuesday and Wednesday. That was close, but not exactly skimming the target level.
With corrective move limited, the traders made another run to the MAs today and got with 4 pips. That is skimming the MA level, and the buyers leaned and have pushed the price higher (there were two close tests).
Low risk buyers are making a play. The question is, “Can they make a bigger play with more upside probing?”.
Looking at the hourly chart, so far, the upside moves have been modest. The highs today are lower than the highs from yesterday. The last intraday high was lower than the earlier one today. So you can’t say, the buyers are hungry for more upside probing.
However, if the trend line at 1.3535 currently on the hourly chart above is broken, and the subsequent underside of the broken trend line and falling 100 hour MA (blue line at 1.3576) are broken, than the buyers are getting more serious and taking back some control from the sellers.
For now, with the price between the trend line above and the 200 day MA below, the battle is on between dip buyers and rally sellers. Traders will be looking for the next shove for confirmation with increased momentum along with it.