USDCAD bounces off support target and trying to extend above and toward MA targets

The USDCAD moved lower in early trading today but found support near a familiar swing area between 1.38917 and 1.3904. Buyers leaned against that zone, which has acted as a floor in recent sessions, and the price responded with a bounce higher.

The recovery has taken the pair back above the 100-bar moving average on the 4-hour chart, currently at 1.39656. That’s a constructive technical step for buyers, as it shifts short-term momentum back in their favor.

However, the pair still trades comfortably below the 200-day moving average, which comes in at 1.40115. That longer-term trend indicator is located within a key resistance zone between 1.40097 and 1.40208, making it a critical hurdle for any further upside.

Above that, the 38.2% Fibonacci retracement of the March 2025 high-to-low move comes in at 1.40525. That level represents a more meaningful target for buyers looking to gain firmer control.

In summary, buyers stepped in at key support and have completed the first step by reclaiming the 100-bar MA. But to turn today’s bounce into something more substantial, they’ll need to push through the 200-day MA and break above the 1.40525 retracement level. Until then, upside confidence remains tentative.

This article was written by Greg Michalowski at www.forexlive.com.