The USDCAD has chopped lower in trading today. The move to the downside comes after yesterday’s run higher stall against the holy of a swing area between 1.3397 and 1.34144.
However, today’s low found the support buyers against its rising 100-hour moving average. That moving average comes in at 1.3367.
If the dollar weakens going forward, getting and staying below that 100-hour moving average would be needed to increase the bearish bias.
Conversely, holding above that 100-hour MA level and extending back above the 50% midpoint of the move down from the December high at 1.3397 would give the buyers the go-ahead to revisit the high of the swing area at 1.3414. Get above it, and the door opens for more upside momentum.