The USDCAD is pushing higher again today, extending the trend-like rally that began last Monday—and doing so with solid technical backing.
Last week’s turning point came when the pair found support near the 100-bar moving average on the 4-hour chart, bottoming at 1.3669 (just above the MA at 1.3662). From there, the buyers took control. The subsequent move higher broke through a key cluster of resistance, including the 100-day MA (1.3790), the 200-day MA (1.3803), and the 50% retracement of the move down from the November 2025 high (1.3810). That confluence break was the green light for buyers—and they responded. The pair rallied 226 pips into the weekly close at 1.3892.
Momentum has carried into today’s session, with price extending to a high of 1.3927. That move has now pushed the pair into a well-defined swing area between 1.3924 and 1.3937—a zone that has acted as both resistance and support going back to August, and one that capped the rally in January near 1.3928.
This is where things get interesting.
If buyers can push above 1.3937 and hold, it opens the door for further upside extension. The trend remains intact, and as always, the bias stays with the direction of momentum—the trend is your friend.
However, this area also offers a low-risk opportunity for sellers. With price pressing into a well-established resistance zone, traders looking for a corrective move may lean against it.
On the downside, a move back below the 61.8% retracement at 1.3888 would start to give sellers a foothold. A break below 1.3860—and more importantly 1.3843—would increase confidence that a near-term high is in place and shift the bias more neutral to bearish.
Key levels to watch:
- Resistance: 1.3924–1.3937 (swing area); break above keeps the bullish trend in play
- Support: 1.3888 (61.8% retracement), 1.3860, 1.3843
For now, the buyers remain in control—but they’re being tested at a key technical ceiling.
This article was written by Greg Michalowski at investinglive.com.
