The USDCAD has been trapped in a relatively tight range over the past two trading days, with well-defined levels containing the price action.
On the downside, support is anchored by the 50% retracement of the move up from the late-October low at 1.40135, reinforced by the 100-hour moving average at 1.40174. On the topside, resistance is set by the broken 38.2% retracement at 1.40430 and the 200-hour moving average at 1.40465. Until price breaks one of these boundaries, the pair remains confined and waiting for a catalyst.
The stronger-than-expected US Empire Manufacturing report gave the USDCAD a lift, pushing the pair toward the session highs and away from the 100-hour moving average / 50% retracement support zone. That tilt higher gives buyers a slight advantage, but the broader picture remains neutral unless the price can break above the 200-hour moving average. As long as the pair stays capped by that level, traders will continue to view the action as range-bound and will wait for a decisive move outside the established support-and-resistance boundaries.
