USD/CAD is a currency pair comprising the United States dollar (symbol $, code USD) and the Canadian dollar of Canada (symbol $, code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed to buy one US dollar. For example, when USD/CAD trades at 1.3500, it means that 1 US dollar is equivalent to 1.35 Canadian dollars. The US dollar (USD) is the most traded currency in the world, while the Canadian dollar (CAD) is the seventh most traded currency in the world.
Read this term was trading in a narrow band of about 120 pips last week. The price closed near highs and above the 30.2% retracement of the July trading range at 1.3204.

In today’s trading, the Asia-Pacific session saw the price move higher initially, but stopped short of last Monday and Tuesday’s high. The price returned below the 38.2% retracement level (@ 1.3204) and buyers turned to sellers. When the converged 100 and 200 hour moving averages were broken near 1.3176, it gave sellers more incentive to push lower. Technically, it also tilted the bias back to the downside. Sellers have control below the 100 and 200 hourly moving averages.

What now?

Friday’s low is being tested near 1.31523. A move lower would take traders to the 1.3134 – 1.3143 swing area. A move below this level and traders would target 1.31157 and July’s extreme low at 1.30918.

To the upside, this would require a move back above the converged 100 and 200 hourly moving averages for the technical bias in USDCAD to shift to the upside again.