The USDCAD is under pressure to start the new trading week, with sellers regaining more control following last weeks rejection of the 200-day moving average (green line currently at 1.40144). The pair had stalled near that level on two separate times last week, leading to renewed downside interest.
After trading above and below the 100-hour moving average (blue line currently at 1.39582), the price today has now fallen back below both that 100-hour and also the 200-hour moving averages (now at 1.39347), tilting the near-term bias more bearish.
The pair is now targeting the swing area between 1.38917 and 1.3904, which served as resistance earlier in April before breaking higher on May 8 and forming a floor. That area could act as support on more selling and a retest.
A break below that zone would open the door to further downside, with the next technical support seen near the 1.3860 region.
Key technical levels:
-
Resistance: 1.39347 (200-hour MA), 1.39582 (100-hour MA), 1.40097–1.40268 (swing area and the 200-day MA and daily resistance)
-
Support: 1.38917–1.3904 (swing area), then 1.38607
Sellers are more in control while price holds below the key hourly moving averages
