The USDCAD made a notable push higher yesterday, breaking above a key swing high from both last week and Wednesday at the 1.39575 level. That breakout was reinforced by a move above the falling 200-day moving average, which currently sits at 1.39622. The technical breach initially attracted strong upside momentum, with the pair climbing as high as 1.3980. However, buyers were unable to sustain the move, and sellers quickly stepped in, forcing the price back down below the 200-day moving average. Importantly, the pullback did not extend below the earlier swing highs around 1.3957, leaving that area as a nearby support pivot.
At present, the price is once again testing the 200-day moving average along with the lows from earlier in the week. This area has now become a critical battleground for traders. A decisive move below both the 200-day MA and the prior lows would mark a failure of the breakout attempt, likely shifting momentum to the downside. In that scenario, the next logical target would come in at the 100-hour moving average, now near 1.3935, as sellers press their advantage.
On the flip side, if buyers can defend this support zone and re-establish control, the technical picture remains constructive. A rebound back above the 200-day moving average with momentum would open the door for another push higher, with the first upside target being a retest of yesterday’s high near 1.3980. A break above that level would further strengthen the bullish case and could spark additional upside extension.
