USD/CAD stays between the goal posts
The USD/CAD is ending the week after trading between the 100 and 200 hour moving average for most of the day. The fundamental economic news may have been negative for the pair this morning (with GDP down 0.7% for the month), but the pair had already done its rallying for the day prior to the release (CAD down, dollar up). When the buyers did not push the pair higher, the low was the favored direction. Selling pushed the pair to the 100 hour moving average where the buyers reemerged.
So the week will end with the pair in between support and resistance awaiting the action next week. The break direction (above the 200 hour moving average or below the 100 hour MA) will dictate the probable direction for the pair.
Labels: forex trading