The USDCAD is trading modestly higher on the day, up about 0.11%, as it retraces a portion of yesterday’s North American session decline. That move lower brought the pair down toward its 100-hour moving average, where buyers stepped in and used the level as a springboard, helping to push prices higher into the close.
Today, the pair has continued to grind higher, maintaining a comfortable distance above the rising 100-hour moving average at 1.3986 (the current price is at 1.4008), a sign that buyers remain in control of the near-term trend. However, the rally has yet to challenge last week’s high at 1.40232, which remains the key upside target. A break above that level would strengthen the bullish bias and open the door for further gains with upside targets at 1.4082 and then the 50% midpoint of the move down from the 2025 at 1.4134.
On the downside, sellers have more work to do. It would first take a move below the 100-hour moving average at 1.3986, followed by a break of the rising 200-hour moving average at 1.3962 and the key swing area between 1.3948 and 1.3966, to shift the technical outlook back in their favor.
Until those support levels are broken, the path of least resistance remains to the upside, with buyers maintaining control of the broader rally that has carried the pair from the May 1 low near 1.3549 to last week’s high at 1.40232.
SOURCE LINK : The USDCADs story remains the same technically, but it is important to know it
