Wednesday, USD/CAD saw the 200 day MA and the 100 hour MA broken, helped by the 50BP hike by the BOC and a lower USD.
The break saw increased selling momentum with the price moving down to test the 200 hour MA at 1.2557. USD/CAD reached the 1.2555 low before bouncing back above the 38.2% level that it broke on the Apr. 5 low (the high reached 1.2573), but has since rotated back to retest the 200 hour MA.
A move below that MA would now be eyed for increased downside momentum, with the swing low from Monday at 1.2550 and then the 50% retracement at 1.25387 as targets.
