USDCAD Holds Above 100-Hour and 200-Hour Moving Averages
Key Takeaways
- •USDCAD stalled after testing the 1.41297–1.41488 area, which has shifted from support to resistance.
- •The pair reached 1.4128 in early Asia-Pacific trading before sellers pushed it lower.
- •Buyers found support at the 100-hour moving average of 1.40923, leading to a modest rebound.
- •The 200-hour moving average at 1.40737 is the key downside level, and a break below it would favor sellers.
- •A move above 1.41297–1.41488 would strengthen the bullish case and put the 1.4247 swing high in view.
USDCAD cannot extend below the 200-hour moving average; bounces modestly into the close
At session highs today, USDCAD tested an old floor that has since turned into a ceiling and found willing sellers.
The pair moved higher yesterday, extending toward a former support zone between 1.41297 and 1.41488 that is now acting as resistance. In early Asia-Pacific trading today, USDCAD reached 1.4128, just below the lower edge of that swing area, where sellers emerged and pushed the price lower.
The pullback found support at the 100-hour moving average, where buyers slowed the decline and helped spark a modest rebound. That moving average is at 1.40923, while the 200-hour moving average is lower at 1.40737. The pair was last trading at 1.41056.
Heading into the North American session, those two moving averages remain the key risk-defining levels and a nearby gauge of whether the earlier bounce can be sustained. As long as price stays above the 100-hour and 200-hour moving averages, buyers keep the near-term technical advantage. A move below the 200-hour moving average would shift the short-term bias back toward sellers and leave the market back inside the prior range that recently capped downside follow-through.
On the upside, buyers still need to clear the 1.41297–1.41488 resistance zone to strengthen the bullish case. If that area breaks with momentum, traders would then look to the 1.4247 swing high as the next major upside target.
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