The buyers took their shot this week
The USDCAD trades above and below its 100/200 hour MAs which are near converged at 1.3179. That comes after the pair peaked at 1.3200. That was just short of a swing area between 1.32015 and 1.32067.
The buyers this week, took their shot back above that area yesterday on two separate occasions., before giving up and moving back to the downside. Today’s retest saw sellers leaning. The mindset? The buyers had their shot. The market did not give them another one today.
Having said that, this week, has seen a limit to the downside too.
The low for the week on Wednesday reached 1.31267. That was just above the 50% retracement of the month’s trading range. The 1.3128 to 1.31393 area is home to a number of swing levels (see red numbered circles).
SUMMARY: The last 7 trading days has seen most of the trading activity trade between 1.3126 to 1.32067/ There was a run higher but it fell short of the September 9th high, and eventually rotated back below the aforementioned swing area. The price is currently trading near the mid level for the week and trading above and below the 100/200 hour MAs.
On the downside, there is good support between 1.3126 to 1.3139.
Buyers and sellers are battling. If there is a small tilt, it is in the favor of the sellers. The buyers had their shot. However, there is still a bunch of work to be done to get a clearer picture, and the door remains ajar for either to take control going forward.