Intraday USDCAD reversal: Key signal near 200 hour MA

The USDCAD fell below the 200-hour moving average (MA) yesterday (green line) and the 50% retracement of the February low-to-high move at 1.4345. However, it held above the 61.8% retracement at 1.4299 and the lower boundary of the recent consolidation range (see Red Box on the chart).

Today, the pair rebounded from a low of 1.43087, pushing back above the 50% retracement at 1.4345 and retesting the 200-hour MA (currently at 1.43726). The high peaked at 1.4376, slightly above the 200-hour MA, but gains were short-lived. The price has since pulled back and is now trading below the 50% level at 1.4344.

The 200-hour MA remains the key short-term pivot for buyers and sellers. Holding below it keeps the bias bearish, while a move above would shift momentum to the upside. On the downside, support is seen at the 61.8% retracement (1.4299), followed by the lower boundary of the Red Box consolidation zone between 1.4268 and 1.42789.

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