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USDCAD tests 200 day MA after GDP and backs off on the first test


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The recent moves above the 200 day moving average have been rejected.

The Canada GDP data came at a bit weaker than expected 0.0% versus 0.1% estimate (and YoY at 1.3% versus 1.4% expected). The USDCAD has moved to a new session high at 1.32897. That is right below the 200 day moving average at 1.32907.

Looking at the hourly chart above, the overlay of the 200 day moving average on the chart shows that the last 3 looks at that MA were able to peek above the 200 day moving average but only for a brief amount of time before sellers returned and pushed the price down. So far, the sellers are leaning against the 200 day moving average.
Earlier today, the price extended above the 200 hour moving average at 1.3259 adnd a topside trend line as well near that level. That gave buyers the technical reason to extend higher. The data has given the next shove to the key resistance.

Sellers should look to lean against level with stops on a break above the 200 day moving average. If broken, the swing highs from September at 1.3298, 1.33039 and 1.33094 are the next targets.  

On Friday and again on Monday, the sellers had their shot(s) at taking the price lower as the pair fell below the floor area (Lower yellow area) at 1.3331-345 area.   Late yesterday and earlier today, that area stalled the fall and also gave buyers the clue to go higher.  

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