USDCAD moves lower but stalls the fall near the 38.2% retracement/200 day MA

Technical Analysis

The USDCAD moved lower on the USD selling immediately after the US CPI data. However the fall in the pair extended down toward key support near the 200 day moving average at 1.3595 and the 38.2% retracement of the range since the December 2023 low at 1.35899. That 38.2% retracement level has stalled the fall back in May and April, and in June as well.

The inability to move below that key target level has led to a rotation back to the upside. The current price trades at 1.36215 which is above the high of a swing area at 1.36154. The price is also near the middle of the range defined by the 100 day moving average above at 1.3639, and the 38.2% retracement at 1.35899.

By the way, the 100 day moving average did stall the rally in trading today ahead of the US CPI. The high price reached 1.36387 just below that MA level

So in the grand scheme, the support at the 38.2%/200 day MA stalled the fall at 1.35899, and the 100-day MA stalled the rise today at 1.36393. WIth the price near the midpoint, the buyers and sellers will continue the battle, until one of the extremes is broken with momentum.

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