The USDCAD traded down and up and down and up and back down and up this week (see hourly chart below). The high price on Monday was retested on Thursday. The low on Tuesday saw the pair, move to and through the 100-day MA (lower blue overlay line on the chart below at 1.3398) but failed. The next test of the 100 day MA on Wednesday, stalled near that level and moved higher.
The up-and-down week is ending with the price between the 100 and 200-hour MAs. The 100-hour MA is at 1.3463 and the 200-hour MA at 1.3497. The price is trading at 1.3482.
In trading next week, traders will take short-term bias clues from the 100 and 200-hour moving averages. If the price breaks higher and above the 200-hour moving average, the highest for the week, near 1.3525 and then the 50% midpoint at 1.3536 would be targeted.
Conversely, if the 100-hour moving average is broken, traders would look toward the low from today’s trading of 1.34214 followed by the 100-day moving average of 1.33985. The low for the week at 1.33778 if broken would open the door further downside momentum.
When the price goes up and down, it implies a market that is unsure of which way he wants to go. Next week we will listen to the technicals, to provide the clues to the story that the market wants to focus.