After attempting to break higher this week, USDCAD buyers continue to come up short at key resistance levels. On Thursday, the pair tried and failed to move above both the 200-hour moving average and the 50% retracement of the May trading range, stalling momentum.

Today, after rallying in the Asian Pacific session, the price In early European trading had another brief move above the 200-hour MA, but that too failed, reinforcing the ceiling. The price has since rotated back to the downside and is now trading below the 100-hour moving average at 1.37968, a level that is now acting as resistance. Staying below this level keeps the sellers in control in the short term.

The next key support comes into play at the swing area between 1.37498 and 1.37724, which held several lows earlier in May. A break below this zone could increase bearish pressure.

Key technical levels:

Resistance:

• 100-hour MA: 1.37968
• 38.2% of the May range at 1.38107
• 200-hour MA 1.3818

Support:

• Swing zone: 1.37498 to 1.37724

• Low for May: 1.36841

As long as USDCAD remains below the moving averages, the short-term technical bias favors sellers.

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