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Adam posts “Why the Canadian dollar will continue to ignore the economic data” and he brings up some key points.
In my video above, I complement the post, with a technical look at the USDCAD.
Yesterday, the price fell to test the low of the Red Box (and lower swing area) between 1.42899 and 1.4304. The buyers leaned near the level and bounced higher.
HOwever, the 100/200 hour MAs stalled the rally (as it does).
Today, the price did move above those moving averages at 1.4382 to 1.43899 and traded up and down in a narrow trading range. The retail sales data was weaker sending the pair to a new high for the day but that rally has stalled.
Nevertheless, the price will need to move below and stay below the 100/200 hour MAs to tilt the bias more to the downside. Absent that, and the buyers are more in control.
The short video outlines the levels in play and explains why….
This article was written by Greg Michalowski at www.forexlive.com.
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