Intraday Update: USDCAD facing critical resistance at 1.3710 amidst consolidation phase | Forexlive

The USDCAD has spent the past six trading days consolidating in a tight range between 1.3651 and 1.3710. On Monday, the pair moved up to test the top of that range but met sellers once again. The subsequent dip found support near 1.36697, matching yesterday’s low (and a swing low from Friday as well), before rebounding higher in today’s U.S. session on renewed dollar buying.

The pair is now once again testing the 1.3707–1.3710 resistance zone, which has capped multiple rallies since last Tuesday. Although Friday’s spike—driven by U.S. tariff news—briefly pushed the pair above this area, the run higher could not be sustained for long, and buyers quickly pushed the price lower, and reestablished the 1.3710 level as resistance. That failed breakout further reinforces 1.3710 as a critical barrier.

A break and close above 1.3710 would strengthen the bullish case with work to do. The 38.2% retracement at 1.37208, followed by a test of last week’s high at 1.3730 would still need to be broken -and stay broken – to add to the bullish momentum.

On the downside, if sellers lean, watch for support at the 100-hour MA (1.3687) and the 200-hour MA (1.3659). A move below both would shift the short-term bias back in favor of the sellers.

Bottom line: Momentum is tilting higher, but a decisive move above 1.3710 is needed to confirm a bullish breakout. Until then, traders remain stuck in a range awaiting a catalyst.

Key technical levels:

• Resistance: 1.3707–1.3710 (July highs), 1.3730 (Friday high), 1.3759 (next swing level)

• Support: 1.3687 (100-hour MA), 1.3659 (200-hour MA), 1.3631

A confirmed break above the current resistance zone would turn the short-term bias bullish. Traders remain on alert for follow-through.