The USDCAD moved lower during the Asia-Pacific session, breaking below the 100-hour and 200-hour moving averages, which are positioned between 1.4389 and 1.4386. The decline reached a low of 1.43824 but lacked momentum to push further downward.
In the early European session, the price started to stabilize near these moving average levels, and by the early North American session, it began to rotate back to the upside. Currently, the pair is trading at 1.44134.
On the upside, key resistance levels include the swing highs from December 20 and December 23 at 1.4435. Yesterday’s high extended above that level to 1.44384, but stalled. Friday’s peak reached 1.44487. Both those levels are targets on further upside momentum today. Get above, and the high for 2024, dating back to December 19, stands at 1.44666.
Those levels remain potential targets as long as the price holds above the critical 100-hour and 200-hour moving averages.
To reignite bearish momentum, the USDCAD would need to move back below the 100-hour and 200-hour moving averages, which would bolster seller confidence and shift the bias in their favor. While the price briefly dipped below these levels earlier today but failed to sustain the move, a decisive break below would signal a more bearish outlook in the short term. This shift could prompt traders to target the lower boundary of the swing area that has held since December 18, which is at 1.4234.
Current Situation
-
The USDCAD price briefly broke below the 100-hour and 200-hour moving averages (1.4389-1.4386) but lacked momentum to sustain the move.
-
The price has since rotated back to the upside, currently trading at 1.44134.
Resistance Levels
-
Key resistance levels: 1.4435 (December 20 and 23 swing highs), 1.44384 (yesterday’s high), and 1.44487 (Friday’s peak).
-
Break above these levels targets the 2024 high of 1.44666.
Support Levels
-
Critical support: 100-hour and 200-hour moving averages (1.4389-1.4386).
-
Break below (and stay below) these levels could reignite bearish momentum, targeting the lower boundary of the swing area at 1.4234.
Bias
-
Bullish bias as long as the price holds above the 100-hour and 200-hour moving averages.
-
Bearish bias if the price breaks decisively below these levels.
This article was written by Greg Michalowski at www.forexlive.com.
Source link
