USDCAD corrects lower today but stays above the 100 day MA | Forexlive

The USDCAD is trading modestly lower on the day. However, the dip lower has been able to hold above the broken 100 day MA currently at 1.3512 (overlay blue line on the hourly chart above), and the rising 100 hour MA (lower blue line in the chart above at 1.35027). Both those moving averages will be barometers for the buyers and the sellers going forward. Stay above is more bullish. Move below is more bearish.

Looking at the hourly chart, the 100 day moving average was broken last week for the first time, but momentum could not be sustained. After forming a bottom on Monday and Tuesday near 1.3439 (see red numbered circles in the chart above), the price moved higher and extended above the 100 day moving average again (in the North American session on Tuesday).

In up-and-down trading yesterday, the “down portion” found support buyers against the 100 day moving average. Buyers maintained most of the control on the successful hold.

In Asian trading today, the pair moved back down toward the 100 day MA again, and once again found support buyers willing to lean against the level. The low price today reached 1.35169. That was just four – five pips away from the 100 day moving average of 1.35121. Risk could be defined and limited against the moving average, and the hope is the price continues the upside momentum.

Admittedly, although the prices above the 100 day moving average, it is within a up-and-down trading range as traders await the next shove outside of the range. The high price yesterday reach 1.3567. The high price that is only gotten up to about 1.3552. Those levels will need to be broken to increase bullish bias in the short term.

On the downside, the 100 hour moving average (currently at 1.35027) would be used as a confirming downside target should the 100 day moving average be broken. Move below each of those levels would tilt the short-term bias more to the seller’s favor with more work to be done.

Recall on Tuesday, the price did dip below that moving average level on a few hourly bars, but could not sustain momentum. The price bottomed at the 1.3439 level (red numbered circles) and moved higher.