Tests a swing area above
The USDCAD took out the low for the week at 1.3727 at the session lows today, BUT (and it is a big BUT), the price held near support at the 100 day MA at 1.3716. The price bounced.
Now, the pair’s price is testing a swing area over the last few days in the 1.37814-969 area. There have been looks above that area on Wednesday, but apart from that, trading since late Tuesday, has been below that area (see yellow area).
A move above will continue to whittle away at the sellers bias and help to give the dip buyers added confidence. However, it will still take a move above the 100 hour MA at 1.38162, to turn the bias even more to the upside. That is near the swing high from Wednesday at 1.3821. The price fell below the 100 hour MA on Tuesday and has remained below it since that time.
Dip buyers anticipating support at the 100 day MA are feeling ok. However, the buyers have work to do to take back more control from the sellers by getting above the swing area and then the 100 hour MA/high from Wednesday. Failure to ultimately do that, keeps the sellers more in control.