USDCAD buyers took a shot at the upside and failed

<p>The USDCAD fell to – and through – the 200-hour MA (and a swing area between 1.3207 – 1.32299) yesterday, but failed. The price rebounded into the close modestly.</p><p>Trading today, the Asian session saw increased upside momentum. The price ultimately broke above its 100-hour movie average (blue line in the chart above) currently at 1.32457. That break led to further momentum that saw the pair break above a key topside swing area between 1.3271 and 1.32853. The price moved above that area to a high of 1.32923, but the momentum faded and the price rotated back to the downside.</p><p>A retest of the 100-hour moving average found support buyers near that level, and the price has returned back to the key swing area (between 1.3271 and 1.32853).</p><p>What next?</p><p>The buyers had shot above the swing area today. However, you can also say that the sellers had their shot both yesterday below the 200-hour moving average, and today on the move back to the 100-hour moving average in the North American session today. </p><p>So the score is even. I give the short-term momentum tilt to the buyers on the ability to remain above the hourly moving averages. If the 1.32853 level is broken to the upside, a move toward the 38.2% retracement 1.3322 would be targeted. There is some resistance at 1.32128 as well.</p><p>Ultimately if the buyers are to take more control, getting above the 38.2% retracement is the minimum retracement level needed to surpass. Absent that and the buyers are just winning the short-term. They are not winning the medium or longer-term bias tilt.</p>

This article was written by Greg Michalowski at www.forexlive.com.