The USDCAD pushed higher during the early Asian session but once again ran into willing sellers at the falling 100-hour moving average, currently at 1.41685. That level has become a reliable barometer for short-term bias. Last Wednesday, buyers tested the moving average and failed. On Thursday, another rally toward the same level attracted fresh sellers. Today’s rejection marks the third consecutive test, reinforcing the bearish short-term technical bias.
What has been disappointing for sellers, however, is their inability to build on the break below key support. On Friday, the pair slipped beneath the 1.41488 swing level and through the important 1.41297–1.41386 swing area—a zone that had acted as support since the breakout above it on June 18. Although the price extended to a low of 1.41166, selling quickly lost momentum and buyers stepped back in.
That same pattern repeated today. The pair dipped to 1.41260, once again trading below the swing area, but sellers were unable to sustain downside momentum. The subsequent rebound suggests buyers are still defending the lower boundary of the recent range.
From a technical perspective, 1.41488 is now the first hurdle. A move back above—and more importantly, a hold above—that level would shift the focus back toward the falling 100-hour moving average at 1.41685. A break above that moving average would be needed to give buyers greater control and increase the bullish bias.
This article was written by fl932d6e52a19643278e0f123bca7198f5 at investinglive.com.