USDCAD buyers had their shot yesterday….they missed. Today, the price rotated toward MAs | Forexlive

The USD/CAD attempted to move higher yesterday following rate decisions by the Bank of Canada and the US Federal Reserve. The price briefly broke above the upper boundary of a key consolidation zone, referred to as the “red box” (see chart), which has defined most of the trading range since December 17. This boundary is at 1.4466, and yesterday’s high extended slightly beyond it, reaching 1.44707. However, the breakout failed, leading to a reversal.

In today’s session, the pair moved lower, reaching a low of 1.4391 during the early Asian session. This level was near the 100-hour moving average (currently at 1.4394) and 200-hour moving average (currently at 1.4382), which provided support and stalled the decline. Since then, the pair has traded in a range, with the upside capped at 1.4435. This level has historically acted as a key resistance and kept the price away from the “red box” high swing area starting at 1.44487.

Looking ahead:

• Upside Resistance: The 1.44487 level remains a key resistance target. Sellers are likely to maintain control as long as the price stays below this level.
• Downside Support: A break below the 100-hour and 200-hour moving averages at 1.4394 and 1.4382, respectively, would shift the bias further to the downside. This could lead traders to target the lower boundary of the “red box.”

For now, the 1.4435–1.44487 zone acts as resistance, while the 1.4382–1.4394 area serves as support.