USDCAD bears notch short-term wins as price challenges 200-hour MA

USDCAD bears are securing some limited victories in the short term.

Initially, the price hit resistance at a topside trendline during the highs of both yesterday and today. Sellers used that barrier to drive the pair back under its 100-hour moving average at 1.42488. That break gave them further reason to test the downside.

The price is now trying to fall below the 200-hour moving average at 1.4227. A sustained break under that level would reinforce the bearish bias and open the way toward the swing support zone around 1.4200.

Sellers are making headway, but more evidence is required. Given the uptrend that started from the September 8 low, abandoning the bullish trend demands additional confirmation.

However, if the 200-hour moving average — the immediate barrier — is broken, the case for lower becomes stronger.

Conversely, if buyers defend that level and push back above the 100-hour moving average, the sellers' recent gains would start to fade.

For traders, these moving averages define risk and gauge control. Staying under 1.4227 gives sellers the upper hand. Moving back above 1.42488 hands buyers another opportunity.