USDCAD is back to pinging after ponging over the last few days | Forexlive

Looking at the hourly chart of the USDCAD, the pair is back “pinging” (going higher) after “ponging” (going lower) over the last few days.

What I mean by that is the price is back above both the 100 and 200 hour moving averages, after staying below over the last few days.

Reviewing the price action, on Friday, the price moved below the 200 hour moving average, and corrected up to it after the stronger-than-expected Canada jobs report. The 200 hour moving average is the green line in the chart above.

On Monday, the corrective high also stalled at the 200 hour moving average .

Yesterday in the volatility of the US CPI data, the price once again stalled near the 200 hour moving average.

Also during yesterday’s trade, the price moved down toward the low floor extreme from the end of January early February between 1.32617 and 1.3273 (see green number circles on the chart above). Buyers came in against the low and pushed the price higher.

Last week on Friday before the Canada jobs report, the price high stalled against the ceiling extreme area between 1.3467 and 1.34747 (see red number circles on the chart above)

Today, with the price moving back above the 100 and 200 hour moving averages, the bias continued its shift to the upside (it’s pinging – going to the upside). Note that buyers started to come in against the 200 hour moving average today helping to confirm the shift in the bias.

So if pinging is a bullish bias, and ponging is a bearish bias, the market is pinging once again with the topside ceiling extreme area is the next major target.

What to do as a trader?

Continue to follow the clues from the extremes, and the moving averages. In between search for interim clues from the choppy price action. However understand, the price action is not conducive to trending within the extremes