USDCAD finds willing sellers near the 100/200 hour MAs | Forexlive

The USDCAD has seen a volatile move up, down and back up (and now down) again after the US CPI data.

The move to the downside extreme saw the price move to 1.3273 which was within 12 pips of the low seen at the beginning of February at 1.32613.

The subsequent snapback rally saw the price move all the way up to a new session high, but that gain was stalled by the near converged 200 and 100 hour moving averages. The 200 hour moving average comes in a 1.33875. The 100 hour moving comes in at 1.33903. The high price reached 1.3390. The current price is back down at 1.3350 which is within a swatch of swing lows and highs going back in time between 1.3339 and 1.3358.

Admittedly, the USDCAD is probably the most up-and-down volatile currency pair of late. One need only look at the hourly chart above to see the ups and downs and inability to hold a trend for long at least.

Nevertheless what we do know over the last week or so of trading is stay below the 200 hour moving average is more bearish. Move above is more bullish.

Going back to last Wednesday, the price held support against that moving average. On Thursday the price also found buyers near that level. On Friday after falling below the moving average level on the better-than-expected Canada jobs report, the high corrective price stalled against the 200 hour moving average. Finally yesterday the high price stalled against the 200 hour moving average.

So over the last four trading days, the 200 hour moving average is either provided support or resistance. Today makes it the third day in a row the 200 hour moving average stalled the rally. Guess what, stay below tilts the bias a touch more to the downside.

On the downside, watch the large swatch down to 1.3339 as a barometer. Move below is more bearish.