USDCAD makes a break for it to the downside. What was the catalyst? What next?

The USDCAD last week had some buying against the 100 bar MA on the 4-hour chart last week (currently at 1.35548) and also some failed breaks that quickly failed.

In trading today, that MA did hold support in the last Asian Pacific/early European market and rallied. However, on the topside, the 100/200 hour MA held resistance and another move lower was started.

This time, the 100 bar MA was broken with momentum. The last 3+ hours have seen increased momentum.That momentum has now seen the price move from 1.3554 to the 1.3500 level. That is the next target support. More momentum below it within target soon lose from August 30 and September 6 year 1.3465.

Conversely, a bounce back from 1.3499 would have traders looking toward Thursday’s low at 1.3532.

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