Get below teh 1.3231 level and STAY below.
The USDCAD tested its 200 day MA (top green line in the chart above) earlier today and found sellers (see post here).
The unexpected sharp fall in the ISM rewarded the sellers against that key 100 day topside resistance level with a sharp move lower. That move has now taken the price to the key swing area at the 1.3231-345 area (see red numbered circles). Admittedly the last 2 days has seen price moves below that swing level but each failed.
On the run lower today, the pair once again fell below the level only to rebound.
If the sellers are to take more control, breaking below the 1.32314 low and staying below is key.
Risk now for shorts comes in at the 1.3245 to 1.32589 area. That area is home to the 100 day moving average at 1.32454, the 100 hour moving average at 1.32539 and the 200 hour moving average and trendline at 1.32589. If the price should move back into that area and then above, it would really spoil the move for those traders looking for a break lower (and outside this consolidation up and down range).
Is it time for a break in the USDCAD?