USDCAD stalls at the 200 hour MA and rotates lower
The USDCAD moved higher in early North American trading, and in the process moved up to test it’s 200 hour moving average . The 200 hour moving average comes in a 1.33477. The high price reached 1.33469 and rotated back to the downside. At the high, the price was also testing a swing area where there been a number of sewing lows going back to January 9. That area comes between 1.3339 and 1.3358.
Admittedly toward the end of January and into early February, the price has been trading more above and below the swing area as the market swings between more bullish and more bearish daily.
However today’s high not only stalled against the 200 hour moving out but also in the middle of the aforementioned swing area.
Going forward traders will continue to use that moving average and area as an upside ceiling. Stay below and the sellers remain in more control.
Taking a look at the daily chart, on more downside momentum, traders will be eyeing the 1.3207 – 1.32299 area. That area is home to swing eyes going back to July 2022 and swing eyes going back to September of the same year. The price then rotated above that area and did not return again until November where support buyers once again leaned against the area. That swing area is now joined by the rising 200 day moving average (green line in the chart below). That moving average currently comes in at 1.32127. Having the swing area and the 200 day moving average at the same area increases the areas of importance.
Just below that area is also the 50% midpoint of the range since the 2022 low at 1.31895. So on further selling going forward, there is a lot of support between 1.31895 and 1.32299. Be aware
USDCAD has a line of support below between 1.3189 & 1.32299
