The subsequent move back to the downside has once again found support against its 100 hour moving average. The current price trades between the two moving averages at 1.2523.
The price of the USDCAD has been trending to the downside. There was a corrective move on Monday which saw the price extend above the 100 hour MA and test the 200 hour MA. However, that momentum move to the upside failed and the price started to trade back below the 100 hour moving average – until today that is.
Now the battle is on as traders decide whether the move to the downside is over and there will be more upside probing (on a break of the 200 hour MA above), OR it the move lower is not and the downside momentum continues (on a break back below the 100 hour MA).