Shut however no cigar. That has been the story for USD/CAD over the previous week or in order sellers proceed to stress the pair decrease however unable to determine the following leg to the draw back.
This comes as value retains knocking on the door of the 200-day shifting common (blue line) earlier than bouncing and shutting above the important thing assist stage by the top of the day. As such, that continues to restrict any main draw back momentum for now.
Will immediately be completely different? Properly, with shares having seen a tough time beforehand, the greenback has been managing to carry up. The loonie is helped by larger oil costs however danger sentiment is arguably nonetheless the important thing driver for now – as evident by how sellers have failed to essentially handle a breakthrough.
China’s charge minimize immediately will assist to supply danger trades with some early impetus however equities aren’t wanting in the perfect of form after yesterday’s declines. As a lot as shares are holding up now, sentiment stays comparatively fragile.
In any case, the 200-day shifting common for USD/CAD will proceed to be a key focal point in figuring out the following trending transfer for the pair. Break under and the draw back is prone to speed up. Maintain above and patrons will slowly try to collect again some momentum in seek for the following bounce (key hourly shifting averages seen @ 1.2513-45).