USDCAD breaks below a cluster of technical levels

The USDCAD is moving lower and in the process has broken below a cluster of technical levels including:

• Upward sloping trendline on the hourly char at 1.3958.
• 100 bar moving average on the 4-hour chart at 1.39506
• The low of a swing area down to 1.3945.

The downside targets come in at 1.3925, a swing area at 1.3892 and the rising 200 hour MA at 1.3870.

Given the sharp run up from the September low at 1.3420 to the high reached just last week at 1.41049 a correction is in order. Breaking below the cluster of technical of his today additivity negative bias. It would take a move back above those levels to disappoint the sellers at least in the short term.

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