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USDCAD moved higher yesterday, extending toward a former support zone between 1.41297 and 1.41488 that has now become resistance. In early Asian-Pacific trading today, the pair reached 1.4128, just shy of the lower end of that swing area, where sellers stepped in and pushed the price lower.
The pullback found support at the 100-hour moving average, where buyers slowed the decline and sparked a modest rebound. That moving average comes in at 1.40923, while the 200-hour moving average sits lower at 1.40737. The pair currently trades at 1.41056.
Heading into the North American session, those two moving averages will serve as the key risk-defining levels. As long as the price remains above the 100- and 200-hour moving averages, buyers retain the near-term technical advantage. A move below the 200-hour moving average would tilt the short-term bias back in favor of the sellers.
On the topside, buyers still need to clear the 1.41297–1.41488 resistance zone to strengthen the bullish case. If that area is broken with momentum, traders would turn their focus toward the 1.4247 swing high as the next major upside target.
This article was written by Greg Michalowski at investinglive.com.
