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Heading into the end of the trading week, the US dollar rose against the Canadian dollar after hitting a new low during the previous week on the trading day.
On the way to the bottom, the price returned below the 200-bar moving average on the 4-hour chart at 1.3687. It also fell below the broken 38.2% retracement of the trading range since mid-April (2-month trading range). The level is also located at 1.3687. Failure to break these two levels disappointed sellers and led to a rebound rally in the North American session.
This move higher brought the price back up to test the 50% midpoint of the 2-month trading range at 1.3717. So far the price has stopped at this level.
Back to the 50% midpoint that neither buyers nor sellers want to control.
Essentially, the Bank of Canada cut interest rates in its latest interest rate decision, becoming one of the first G7 countries to do so. However, after peaking inside the swing zone between 1.3784 and 1.3803, the price has risen and fallen over the past seven trading days or so. Moreover, the current price is less than 50% of the 2-month trading range. On the positive side, it is above the 200-bar MA on the 4-hour chart at 1.3687, and is trading above and below the 100-bar MA on the 4-hour chart at 1.37079.
So buyers and sellers seem to be pointing to next week where there may be a bigger shift in technical bias one way or another.
