The USDCAD has been climbing steadily since bottoming on May 1, with buyers consistently stepping in on dips near the rising 100-hour moving average. Earlier in the Asian session today, the pair tested that key technical level once again and rebounded, pushing to its highest level since April 15 before running into sellers and rotating back lower.
The pullback now has traders focused once again on the rising 100-hour moving average at 1.37457. As long as the price stays above that level, the buyers remain in short-term control. A break below it would not necessarily shift the bias fully to the downside, but it would give buyers some reason for caution and could trigger a deeper correction toward the next major support zone near 1.3720, where the rising 200-hour moving average and 100-day moving average converge. That area should be a key battleground for traders looking for the next directional clue.
On the topside, if buyers can continue to defend the 100-hour moving average and reestablish momentum, the next target comes in at 1.3787. Above that, traders would turn their attention to the 61.8% retracement of the March 31 decline at 1.38068, followed closely by the 200-day moving average at 1.38118
