Falls below 200 and 100 hour MA
The Canadian retail sales price, surprised to the upside (+0.8% versus +0.3% est. and +1.5% vs +0.7% est for ex auto). The CAD has gotten stronger as a result (USDCAD weaker). The fall has taken the price below the 200 and 100 hour MAs at 1.3268 and 1.32597 respectively. Stay below is more keeps the bears in complete control.
Looking at the hourly chart, a trend line connecting the Monday and Tuesday lows cuts across at the 1.3249 area. A move below that level opens the pair for a further slide. The 1.3208-11 is an area where there were a number of swing levels. Yes, the price traded below, but it kept returning to that area for support.
So far corrective action off the initial run lower has been able to stay below the MA levels. The sellers are trying to keep a lid on the pair against those MA levels it seems. A move above might get a little sticky if the pair moves above the 1.3282 (sellers get frustrated).
