USDCAD complete up and down 70 pip lap in volatile holiday trading | Forexlive

Tis the season….

The USDCAD moved down to an intraday low at 1.3624 at 9:05 AM ET. That low stalled right ahead of the 200 hour MA.

The next 2 hours saw the price move up to a new high for the day at 1.3694 at 11 AM ET. Admittedly that is the London fixing time. So it seems some USDCAD was on the list of currency pairs to buy at the fix.

From 11 AM ET to 12:30 PM ET, the price then moved all the way down to and through the earlier low at 1.3624 to a new day low but only to 1.36223 – two pips below the prior low. That low was just above the 200 hour MA (green line in the chart above at 1.36216.

The up and down “lap” took the price up and down about 70 pips. Tis the season.

So what next?

What we know technically is at least the 200 hour MA held support. The last move lower was the 4th test of that MA over the last two trading days. The inability to crack below with any momentum, increases the levels importance going forward. Stay above, and the dip buyers are holding in there. Move below, and all upside bets are off.

What we also know is the market volatility may increase during the next week or two of trading.

Not only did the USDCAD do a lap, but pairs like the EURUSD moved lower testing and breaking below is key support downside target, but that break failed and the price snapped back higher (see chart below). The pair did not make new lows and then new highs like the USDCAD, however, it did do a ping pong move back to the 100 hour MA at 1.0632 after the 200 hour MA was first tested. Buyers leaned near the 100 hour MA. Sellers leaned near the higher 100 hour MA.