The USDCAD is moving lower today, helped by better-than-expected Canadian manufacturing sales and a weaker US Empire manufacturing index.
The move to the downside has taken the pair toward a cluster of support, including:
100-bar moving average (4-hour): 1.3814
Swing low level: 1.38127
200-bar moving average (4-hour): 1.38067
The session low has so far reached 1.38144.
This zone is now a key battleground for both buyers and sellers:
Buyers will look to lean against this cluster - they stop on a break below - to build a rebound.
Sellers will need a break below the cluster to open the door for further downside momentum.
Adding to the bearish tilt, the pair failed to extend above the swing area between 1.3878 and 1.3917 last week. On the flip side, the 200-bar moving average has repeatedly acted as support, increasing its importance as a pivotal level to watch.
The battle zone between the buyers and sellers at the key technical level.
