USDCAD falls in early NA trading to a MA cluster. Buyers lean on the first test.

The USDCAD has moved sharply to the downside in early NA trading after the highs today stalled near the low of an upper swing area (at 1.44488) The market price waffled up and down in the European session today, but over the last hour or so has taken a run to the downside.

That move lower saw the price moved to a cluster of MA including the 100 and 200 hour MAs and the 100 bar MA on the 4-hour chart. All of those MA are within a few pips of each other betwee 1.4383 and 143.889. The low reached 143.91 and bounced.

The price is trading above 1.4400 at 1.44089.

Going forward if the price cannot get below the cluster of MAs, the buyers are still in play. Having said, that ultimately, the buyers will need to get and extend above the high of the Red Box below. Until then, the buyers and sellers will continue to batlle with the MA cluster the bias defining level.

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