The USDCAD has moved higher this week, but it hasn’t been a smooth ride.
The low for the week was set on Monday, with the total trading range holding to a relatively narrow 70–75 pips. The high was reached on Thursday, coming in near a swing high from August 1. Today’s pullback tested the rising 100-hour moving average at 1.37807, but sellers could only push the price to 1.3788 before a modest rebound to the upside.
Technically, the price spent much of Monday through Thursday oscillating around its 100-day moving average — a level that often serves as a key support or resistance zone. This week, however, it acted more as a magnet, reflecting an ongoing tug-of-war between buyers and sellers. Yesterday’s breakout above the 100-day moving average (now at 1.37707) has so far been sustained, suggesting buyers have gained a slight edge.
Heading into next week, as well as a price to remain above the 100 day moving average, the bias remains more to the upside. On the topside, the high price from the week near 1.38193 and going back to August 1 as well, is the close target above that and the high price from last week at 1.38788 would be targeted.
There is room to roam.
On the downside, move back below the 100 day moving average and the sellers regain firm control from a technical perspective.
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