The swing highs for the week stalled the earlier rally today in the USDCAD
The USDCAD technical story today is about failing to get above the swing highs for the week between 1.31157 and 1.31235 (see red numbered circles). The high price reached just below the high of that area at 1.31225. Not being able to move higher and above that swing area, turned buyers to sellers.
The price has now moved below its 100 hour moving average at 1.30942 and looks toward the 200 hour moving average at 1.3077.
Traders will now look toward that 200 hour moving average (it is also near the 38.2% retracement at 1.30785). Get below should solicit more selling with swing lows from Monday and Tuesday at 1.30629 and the 50% retracement 1.30497 as the next targets.
Buyers may take some profit near that 200 hour MA with stops on a break below.
Of course, if the new break below the 100 hour MA starts to fail, that would spoil the bears party in the short term.