Tests the 100 hour MA for the 2nd time and bounces in volatile up and down trading
The USDCAD has completed the up and down trading lap that saw the price bottom in the Asian session against the 100 hour MA at 1.2650, move up to test the the high from last Friday at 1.27441 (the high ticked up to 1.27363 soon after the US jobs report), and has now moved all the way back to and through (briefly) the 100 hour MA at 1.26507. The low reached 1.2645.
The price has bounced up to 1.2675. That corresponded with a high price from yesterday’s early Asian session. Move above that level should see further upside momentum as the pair is currently in the midst of a chopping up and down trading pattern. The 1.26976 to 1.2700 would be the next upside target on more upside momentum
Needless to say a break back below the 100 hour moving average (blue line in the chart above) should solicit more selling with the 200 hour moving average (green line) at 1.26242 as another key downside target. This week the price traded above and below that 200 hour moving average, indicative of the volatility in the market.