USDCAD bulls lose steam near major resistance. What next? | Forexlive

USDCAD pushed sharply higher today after an early Asian-Pacific session test of its rising 200-hour moving average (green line). The rally lifted the pair back above the 38.2% retracement of the May decline at 1.37208, and through the key swing area between 1.37498 and 1.37590.

That breakout opened the door for a test of the 50% retracement level at 1.3777. However, the rally lost momentum just shy of that target, with the high stalling at 1.3774—just three pips short. The pair has since rotated lower, now trading back within the 1.37498–1.37590 zone, signaling some buyer fatigue.

What next?

Key levels to watch:

• A break below 1.37498 could see a retest of the 38.2% retracement at 1.37208, followed by the rising 100-hour MA near 1.3704.

• A move back above 1.37590 would put the focus back on the 1.3777 target.

Momentum has stalled, and this swing area will now act as a short-term barometer for bullish or bearish control.