The high prices from last week stall the rally today
The USDCAD rates the higher yesterday help by technicals that saw the price move above both its 100 and 200 hour moving averages (blue and green lines) and 50% retracement of the move down from the May 13 high (at 1.21074). The high price yesterday did stall against its falling 100 bar moving average on the 4-hour chart.
Today, that moving average was broken in early Asian trading, but the high price for the day stall ahead of the highs from last week near 1.21437. The high price today reached 1.21412 and rotated back lower. When the 100 bar MA on the 4-hour chart was re-broken – this time to the downside – the buyers turned sellers and the last five hours has seen a steady decline from the MA level.
The price of just did the back below the 100 and 200 hour moving averages at 1.20723 and 1.20752 respectively. The price is trying to rebound back above that moving average level. Watch the 1.2085 level as potential resistance. That is the 38.2% retracement of the move down from May 13. It is also near the highs from Monday's trade. A move back above would disappoint sellers on the break and should lead to more upside probing after the fall.