Key area/Key test
The USDCAD has moved below the 100 hour MA, the 200 bar MA on the 4-hour chart (at 1.3033). THe 200 hour MA at 1.30049 and even peaked below the 50% of the move up from the August 26th low. It was only a peak. The range for the day is 125 pips. The 22 day average is 97. So the range is a bit extended.
This is a key area. The 50% tends to be a dividing line between bullish and bearish. But we are below the 200 hour MA at 1.3004 level too (and that is bearish). So traders have a decision. Right now we are seeing some bottom fishing against support, but would expect stops on a break below the level. A move back above the 200 hour MA would look toward the 1.3025/33 area. That is where the 38.2% and the 200 bar MA on the 4 hour chart is found. I would expect sellers on a move toward that area too. PS oil is up about 3% to 44.45 which is helping the CAD strength today.
