The USDCAD has moved higher in the North American session, breaking back above a key swing area between 1.38078 and 1.38499 (highlighted by the red numbered circles on the chart). The rally has taken the pair up to a session high near 1.3890.
On the 4-hour chart, the next upside target comes into focus near the 1.3930 level—a key resistance zone to watch if bullish momentum continues.
Drilling down to the hourly chart, the pair has also broken above both the 100-hour and 200-hour moving averages. The 100-hour MA was cleared at 1.3832, followed by the 200-hour MA at 1.3861. Holding above these levels keeps the buyers in control from a technical standpoint.
A move back below the 200- and 100-hour MAs would weaken that bullish outlook and suggest a potential shift back toward neutral or bearish bias.
The buyers are making a play, but there is work to do from a technical perspective.
This article was written by Greg Michalowski at www.forexlive.com.
