The USDCAD bias remains more bullish with key resistance looming above | investingLive
With the press conference over, the USDCAD is maintaining the price above the high from June at 1.37969. Staying above that level is key in the short-term for keeping the trend higher in full bullish mode.
Having said that, key resistance from the 100 day moving average at 1.38279, and the 61.8% retracement of the move down from the May high at 1.38335 could provide some levels for short-term sellers to lean/take profit. However, a move above both should give buyers even more confidence to push to the upside.
Looking at the daily chart, the price of the USDCAD is still lower on the year by 560 pips or 3.968%. That is good news for Canadian inflation which is something that BOC’s Gov. Macklem spoke to.
However, if the market is shifting more to a “buy US dollar mode”, there is room to roam to the upside. Having said that, getting above the 100 day moving average is paramount for a more bullish technical picture.
Recall from earlier in the year, the price of the USDCAD (going back to November) was trading mostly in a range after the run up from September 2024. The spikes to the upside were tariff -related, but as time went on, the anxiety from tariffs started to ease and then totally fade with rate outside of the trading range. That led to the rotation to the downside to 2025 low.
The correction now is still modest, however, we are approaching a key potential turning point for the pair .