Today, the rises in the “red box” remained high
USDCAD has moved to a new low level in the North American session and tested its 200-hour moving average of 1.26285. The low price reached 1.2633
Recall yesterday that the price exceeded the expected tamer after the tamper below this sliding average line, but the break did not last long. The price moved back higher and closed near the top of the session.
Today, the peaks were slightly extended to test the swing range from 1.26938 to 1.27059 (see green numbered circles). The high price reached 1.27073 (just a pipe or so above the high extreme) and moved back lower.
This swing area is the upper end of the “red box” between 1.26938 and 1.27059, which has mostly included pricing until 23 August. The lower end is between 1.2568 and 1.25832 (see red circles with numbers). Yes, there have been extensions both above and below the red box, but most of the pricing is at the heart of the region.
If the price is close to the center of the red box and at a 200-hour moving average between 1.26285 and a 100-hour moving average of 1.26595, the bias is neutral. Buyers and sellers are looking for the next hit outside of those moving averages, hopefully during the break.