Final week’s transfer under failed
There may be not an entire lot occurring and the vary for the day within the USDCAD is just 29 pips, however what may be stated is the value is bouncing off its 100 day MA in the present day. There have been three separate appears on the MA on the hourly chart with a few Asian session bars dipping under however solely by just a few pips earlier than rebounding. The MA is presently at 1.32258. The present worth is simply above that at 1.32316.
Final week, the pair moved above the February excessive at 1.3228 however stalled at 1.3239 and reversed decrease. On Friday, the promoting continued and the value moved under the 100 and 200 hour MAs. The bears confirmed their colours after the break of the 200 hour MA because the checks of the road (inexperienced line within the chart above) stalled rallies.
The 100 hour MA is at 1.32536 and the 200 hour MA is presently at 1.32623.
The bears are making the play for extra management, however it should take a break of the 100 day MA after which the 50% at 1.32036 so as to add to the bearish sentiment.
In the meantime, danger outlined patrons are preventing the sellers towards the MA line. They’re hoping for the extent to carry and a subsequent transfer again above the 100 and 200 hour MAs. The excellent news for them, is danger is outlined and restricted. They need to not prefer to see buying and selling under the MA stage.
So there’s a battle on the key stage. That’s not a shock. Which approach would you lean?