Here we go again.
The USDCAD has been trending more to the downside. This week a new low was made going back to September 2022. On the move to the downside, there have been corrective moves higher which have seen the price of the pair move above its 100-hour moving average (blue line in the chart below). However, on each of those breaks, the price has run out of upside steam well before reaching its 200-hour moving average (green line in the chart below). That kept the sellers more in control.
Today, the buyers are trying once again to push the pair higher. Much lower oil prices are helping to weaken the CAD. There may also be a risk-off sentiment which tends to weaken the CAD. However, that 200-hour moving average remains a hurdle to get to and through to give the buyers more confidence that a more sustainable corrective move may be in the cards. Absent that break, the sellers are still holding the better hand.
Here we go again. USDCAD back above the 100 hour MA