USDCAD trades down a few pips in up and down trading.
The USDCAD extended the gains from yesterday to even higher highs in the early Asian session. The price moved above the 50% retracement of the move down from last week’s high at 1.40355 (see hourly chart below). The pair peak just ahead of the 61.8% retracement at 1.40677. The price reached a high of 1.4064 before rotating back to the downside.
The move lower has taken the price back below its 200 hour moving average currently at 1.40236. The price corrected up to that moving average line on the last hourly bar, and found willing sellers. The current bar is staying below the lower 100 hour moving average at 1.40116. Stay below each keeps the sellers in play. Move above and the bearish waters tilt more to the upside again.
Also in play is a swing area centered around the 1.4000 to 1.40047 area. If the price can move back below the 1.4000 level, it should tilt the bias even more to the downside at least intraday.