USDCAD remains below its 200-day MA
The USDCAD price hit its lowest level since Nov 10 today, and in the process moved below the 200 day MA at 1.24984 (green overlay line).
The price also fell below a swing zone on the 4 hour chart above between 1.2485 and 1.2497. The low price hit 1.2452 before rebounding higher.
This development ended up retesting the 200-day AD. The highest fix hit 1.2502 – 4 pips above the key MA level – but has since retreated. The current price is trading at 1.2487.
Coming back below the 200-day moving average is a bearish move. The vendors put on a play. However, sellers need to hold the price below this level to keep this bearish breakout intact.
The above 4 pip move is a concern, but didn’t last long. The sellers therefore retain control over this level. The next target area on the downside is between 1.2427 and 1.2432. Move below, and the door has opened for more swinging troughs of extremes in October and early November 2021.