USDCAD price converging near converging MAs
In line with expectations, Canada’s retail sales for the month exhibited a decrease of -1.4%, even as the core measure outperformed predictions at -0.3%, compared to an expected -0.8%. Concurrently, oil prices saw an upward swing, creating a mixed economic landscape. This combination of softer retail data, coupled with stronger oil prices, has caused a moderate dip in the USDCAD, edging it towards technical support.
Examining the hourly chart, the USDCAD has been moving towards a confluence of converging moving averages:
- The 100-hour moving average , currently descending, stands at 1.3477.
- The 200-day moving average, on an upward trajectory, lies at 1.3470.
- The 200-hour moving average, also rising, is located at 1.34588.
These movements have resulted in a neutral technical zone in the range of 1.34588 to 1.3477, with the price oscillating around this MA swing area. The low price within this range reached 1.3469, with the current price gravitating towards the higher end at 1.3477.
Earlier this week, the peak price of 1.3567 was hit during Monday’s Asian session, slightly above a swing area between 1.3553 and 1.3566. Conversely, the lowest price point of 1.3403 was achieved on Tuesday, briefly undercutting another swing area between 1.3404 and 1.34214.
On Wednesday, the price took a breather at the 200-hour moving average on a dip and then rebounded to a lower swing area between 1.3517 and 1.35266. As the pair converges around neutral levels defined by the MAs, the market is bracing for the next substantial movement in response to upcoming economic signals. Waiting for the next shove.