USDCAD technicals: USDCAD moved above the 100 day MA. It didn’t go properly.

USDCAD pushed larger in in the present day’s session, breaking above the 200-hour MA at 1.37817 and the 100-day MA at 1.37876. From a technical perspective, these breaks ought to have been significant and set the stage for extra upside momentum. As an alternative, the rally shortly misplaced steam, and the value slipped again beneath each ranges, leaving merchants to query whether or not the transfer was merely overextended.

For USD sellers, CAD consumers, or risk-focused merchants, the 100-day MA now serves as a transparent stage to lean towards for brief setups. A sustained transfer decrease from right here opens the door to the 38.2% retracement at 1.37626, with the 100-hour MA at 1.3754 offering the following draw back goal.

If worth strikes beneath each these ranges, focus shifts to the 50% retracement, which might be the following logical help zone.

Recall that final week — the pair broke beneath the 50% retracement, however the momentum failed, and USDCAD based mostly out earlier than reversing larger.

Merchants ought to be conscious of the same final result right here. Failed breaks are one thing merchants ought to be cautious about technically. However, if the consumers return and push above the 100 day MA, I’d not mess with the quick facet (it represents the danger and bias defining stage)

This text was written by Emma Wang at investinglive.com.