Cracks 100 hour MA/38.2% and scoots lower
The price of the USDCAD moved below the 100 hour MA and the 38.2% retracement at the 1.3252 level and scooted lower. The break also cracked below a lower trend line but stalled ahead of the 50% retracement at the 1.3224 level. The low reached 1.32278 so far. I would expecte that sellers would look to keep the 100 hour MA now as resistance.
You can see the momentum on the break of the 100 hour MA on the 5 minute chart below. The MA was first tested, but when broken a short time later, buyers turned to sellers and forced the pair lower. Staying on the same chart, the 38.2% of the last leg down today comes in at 1.32499 -near the 100 hour MA. That is another reason for shorts – who are looking for more downside – to look for sellers on a retest there.