USDCAD decrease however holds 100 hour MA

USDCAD moved increased on Wednesday, breaking above each its 100- and 200-hour shifting averages (blue and inexperienced traces on the chart above) —a bullish technical growth. Notably, this marked the primary sustained transfer above the 200-hour shifting common since April 9. Again then, the pair briefly breached the extent earlier than reversing sharply and trending decrease, finally bottoming at 1.3827 on April 14 after falling from 1.4260.

Right now, nevertheless, the upside momentum light. Throughout the Asia-Pacific session, the pair tried to carry above the 200-hour shifting common (presently close to 1.3860), however that stage gave means at first of European buying and selling. The following decline noticed the value check the 100-hour shifting common, now at 1.38356, with a session low of 1.3839 earlier than a modest bounce.

Whereas the value did handle to briefly transfer again above the 200-hour MA, it shortly slipped again between the 100- and 200-hour shifting averages, placing the pair in impartial short-term territory. These two shifting averages are actually appearing as the important thing technical barometers.

• A sustained transfer beneath the 100-hour MA would open the door for a retest of this week’s lows close to 1.37808. Transfer beneath that and the pair is buying and selling on the lowest stage since October 2024 and opens the draw back for extra probing.

• Conversely, a break again above the 200-hour MA at 1.3860 may revive bullish momentum—although consumers already failed as soon as through the early North American session, which raises doubts about follow-through on the upside.

For now, the battle traces are drawn between the shifting averages, and merchants might be watching carefully for the subsequent directional shove.

This text was written by Emma Wang at www.ubaidahsan.com.



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