USDCAD test support ahead of the week’s low extreme area

Fall from 200 hour MA and back below 100 hour MA

The USDCAD has moved down to test support ahead of the week’s lower extreme swing area. The 1.31689 to 1.31731 is home to swing lows and highs going back to Tuesday’s trade (see green numbered circles and lower yellow area).  The low price just extended to the high of that range at 1.3373 and found some support buying.

If the price is able to stay out of the lower extreme down to 1.31324, dip buyers would like to see the price move back above the 1.31914 level and then the 100 hour moving average at 1.32006. The 1st level corresponds with the low from August 13 and again on August 17. On August 18 the price fell below that level. Yesterday, the pair moved back above.

The downside today got started after the pair tested its 200 hour moving average and found willing sellers. The price has not traded above that 200 hour moving average since the early hours on August 11.

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