USDCAD falls but approaches a key dual MA support target

The USDCAD is tumbling to the downside despite stronger durable goods in the US, weaker retail sales in Canada, and stronger University of Michigan (but with lower inflation expectations). The preliminary retail sales for April in Canada showed a 0.7% increase which may be supporting the currency a bit.

Looking at the hourly chart, the price has now moved back below its 200 bar moving average on the 4-hour chart at 1.36917, and looks toward converged 100 hour moving average and 100 bar moving average on the 4-hour chart at 1.3668. Below that, and the 200 hour moving average comes in at 1.36469.

With the dual moving averages at the same level, that should increase the levels importance. As result, I would expect to see dip buyers leaning against the level (at 1.3668) with a stop on a break below.

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