USDCAD pressured decrease as sellers keep in management under key MAs. Low for the 12 months is eyed.

USDCAD is beneath strain at present after sellers yesterday (and on Monday too) stepped in close to twin resistance from the 100-bar transferring common on the Four-hour chart and the 100-day transferring common — a confluence that capped rallies and saved the bearish bias intact (see blue traces on the chart above).

The draw back momentum accelerated yesterday and continued into at present, with the pair breaking under the 50% retracement of the September 2024 low to the current excessive, positioned at 1.4108. That degree now acts as shut resistance. Keep under is extra bearish. The worth is at 1.4062 at the moment.

The pair’s decline has the value transferring nearer to the following key help zone — the swing space between 1.40268 and 1.4009. That zone is vital, not only for value construction, however as a result of just under it sits the rising 200-day transferring common at 1.39968. Importantly, USDCAD has not traded under its 200-day MA since October 2024, making it a big line within the sand for each bulls and bears.

A break under the 200-day MA would additional shift the bias to the draw back and will open the door for deeper retracements. Till then, short-term momentum stays with sellers, however key help is nearing.

Key ranges:

• Resistance: 1.4108 (50% retracement), Swing space between 1.41498 and 1.41789.

• Help: 1.40268 → 1.4009 (swing space), 1.39968 (200-day MA)

• Bias: Bearish under 1.4108, with give attention to 1.4009 and 1.39968 for a help check

This text was written by Emma Wang at www.ubaidahsan.com.



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