The USDCAD remains directionless in the short term, trading within well-defined technical boundaries as market participants await a decisive break.
On the 4-hour chart above, price action this week has respected major moving average levels:
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Tuesday’s high extended up to test the 100-day moving average, currently at 1.37954, where sellers leaned against resistance and held the line.
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On the downside, today’s low briefly moved below the 100-bar moving average on the 4-hour chart, now at 1.37305, but buyers quickly stepped in, preventing further downside and halting the decline.
Between these two key MAs lies a notable swing area from 1.3749 to 1.3758 — a zone that has consistently drawn interest from both buyers and sellers. The pair is currently trading within this range, reflecting market indecision.
Key Technical Levels:
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Support: 100-bar MA on the 4-hour chart – 1.37305
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Resistance: 100-day MA – 1.37954
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Neutral zone: Swing area – 1.3749 to 1.3758
Bottom Line:
Just like USDJPY, USDCAD is stuck between moving average extremes. The battle between buyers and sellers continues within a tight range, with momentum likely to build only after a break either above the 100-day MA or below the 100-bar MA on the 4-hour chart. Until then, tactical trading within the range remains the theme.
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