USDCAD corrects into intraday resistance near 1.34306. Will the sellers enter?

<p>The USDCAD trended lower as the price technically broke below its 200-day moving average near 1.3464. It's 38.2% retracement of the move up from the July low was also broken near that level.</p><p>The run lower was also helped by higher CPI data, but after breaking below the 100-day moving average at 1.3398 and the 50% midpoint of the same move higher at 1.3393, sellers turned to buyers and the price corrected higher.</p><p>What next?</p><p>The price has moved up to test it falling 100 bar moving average on the 5-minute chart and the 50% midpoint of the last trend move lower intraday near 1.3431 (see 5-minute chart below). If sellers are to stay in control, staying below that area would be required. Absent that, there could be further upside momentum.</p><p>On the downside, the 100-day moving average at 1.3399 remains a key level that would need to be broken – and stay broken – to increase the bearish bias going forward.</p>

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