USDCAD is trading higher and lower with sellers now taking a technical role. Specifically, the price moved below its 100-hour moving average and 100-bar moving average on the 4-hour chart near the 1.3458 area. The day’s high early in the North American session rose to test the 200-day moving average at 1.3476, but failed to reach New York and breached that key moving average target. Buyers turn to sellers.
So sellers are trying to play USDCAD to start the trading week after buyers have had their chance and failed. Can they maintain their momentum? Increased bearish momentum would prompt traders to look towards the 1.3398 – 1.34144 area, but the price must remain below the 1.3459 area.