USDCAD strikes again above the 100/200 hour MA after breaks decrease this week failed (twice)

The USD/CAD skilled vital volatility earlier this week, initially transferring decrease on Monday following the Trump tariff story and its subsequent denial. On Tuesday, the pair reversed again decrease as soon as once more, earlier than rebounding larger to shut stronger on the day.

Throughout this back-and-forth motion, the worth briefly moved exterior a beforehand confined buying and selling vary (Pink Field on the chart under) outlined by a decrease swing space between 1.4334 and 1.4348 and an higher swing space between 1.44487 and 1.4466. Nonetheless by the shut of buying and selling yesterday, the worth was again into the Pink Field.

In at this time’s buying and selling, the corrective transfer decrease throughout the Asian-Pacific session pushed the worth into the decrease swing space, the place consumers stepped in and drove the worth again upward.

This rebound prolonged above the 100- and 200-hour transferring averages, that are positioned between 1.43748 and 1.4382. Since breaking above these ranges, the worth has held regular above the transferring averages, shifting the short-term/intermdiate bias in favor of consumers.

If this bullish momentum continues (with the present worth close to 1.4396), a transfer towards the higher swing space of the “Pink Field,” between 1.44487 and 1.4466, is anticipated.

Conversely, if the worth falls again under the 100- and 200-hour transferring averages, it might tilt the bias again in favor of sellers, with merchants possible focusing on the decrease swing space between 1.4334 and 1.4348.

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



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