A move back above the 1.2926 should solicit more buying
The USDCAD fell after some of the heat came off from tariffs (not out of the woods yet).
As posted earlier, the 1.2908-26 ceiling was broken yesterday to the upside (see daily chart above). A bullish move.
Today, that break area, was broken back to the downside. A bearish move on the failed break.
The question for traders then became "Can the price stay below the old ceiling....again?"
So far that has happened (see hourly chart below), but in the current hourly bar, the topside of the area was tested. The high reached 1.2944 and backed off.
Sellers are trying to keep the lid at the ceiling and treat the break yesterday as an aberration. A move back below the 1.29083 is the first step (and we are seeing that as I type).
Going forward, if the price can get and stay below the rising 100 hour MA (blue line in the hourly chart below), that would give the sellers a little more breathing room and more confidence that the ceiling has been successfully rebuilt.
