The USDCAD has been tumbling lower after the swing highs stalled the rally
The USDCAD rose toward the high from yesterday at 1.28804 in the Asian session only to fall short of that target. The high price reached 1.2874. Sellers started to push the price back down and the momentum has increased into the North American session.
Along the way, the price fell below a swing high levels going back to December 29 between 1.2775 and 1.27983. The 100 hour moving average was also broken at 1.27744 (blue line in the chart above).
The pair currently trades between the 100 hour moving average above and the 200 hour moving average below it 1.27281. The low has so far reached 1.27395. Also between those levels is the 50% retracement of the move up from last week's low. That level comes in at 1.27338.
On further weakness I would expect dip buyers to lean against the 200 hour moving average and 50% retracement level . However there should also be resistance against the 100 hour moving average at 1.27744 at least on the first test.
When the pair moves between the MAs and they are fairly wide apart, there tends to be a battle between levels until the buyers or sellers breaks and runs the pair. As a result, there should be support against the combination of the 50% retracement and the 200 hour moving average.