USDCAD moves back higher to test the 100 hour MA

[forex4you]

USDCAD moves back higher to test the 100 hour MA

<p>The USDCAD moved lower in early Asian session and in the process moved below the 100 hour MA (blue line) and down to test the swing area between 1.3076 up to 1.30922. The swing area goes back to May 12, 2022 (not shown). There were swing highs in the area on June 17, July 5, and July 6. On July 14, the price extended above that level and tried to stay above but could not sustain the momentum.</p><p>At the end of August and into September, the price has been able to trade back above the swing area. On Friday, the low price did extend back into the area only to find support buyers against it. In trading today, the low price stalled ahead of it.</p><p>The move back to the upside since support held, has the current price back up retesting the 100 hour moving average. As mentioned, earlier today in the Asian session, the price moved below that level on its way to session lows. Getting back above the 100 hour moving average would be more positive from a technical perspective. Conversely if the sellers against the MA can hold, The technical tilt remains in the sellers favor.  Key level for buyers and sellers.</p><p>Reember,.... the Bank of Canada will be announcing their interest rate decision tomorrow at 10 AM ET. The expectations are for a 75 basis point hike to 3.25% as central banks are intent on snuffing out inflationary pressures despite expectations also for weaker growth.  Do traders back off from high levels (low CAD) ahead of the rate decision?  The 100 hour MA will be a barometer for that idea.  </p>

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

Source: USDCAD moves back higher to test the 100 hour MA

forexlive.com