USDCAD Technical Outlook: Support holds, eyes shift to 1.3685–1.3692 resistance zone | Forexlive

The USDCAD fell in the Asian and the early European session, and found strong support at its 200-hour moving average (currently at 1.3632) and the low of the swing area near 1.3630, helping to stall the early decline in today’s trading. The bounce from that support area kept the buyers in play and helped shift short-term momentum back to the upside. The pair is also back above the 38.2% of the move down from the June high at 1.3676.

The next major test for buyers comes at the 50% retracement of the move down from the June high, which sits near 1.3676, followed by the key swing area between 1.36858 and 1.3692. That zone has acted as a key inflection point on multiple occasions in recent weeks and will be a crucial hurdle if buyers are to regain further control.

For now, holding above the 38.2% and the 200-hour MA keeps the recovery prospects alive for buyers. A move back below would start to negate the current bounce and reintroduce downside pressure, with support at 1.3616 (100 hour MA) and 1.3591 and 1.3579 as possible targets.

As it stands right now, however, the bulls are back in the driver’s seat, but they’ll need to prove themselves above 1.36763 and 1.36923 to turn the bias more convincingly bullish.

Later this year,
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.