The USDCAD has been confined to a well-defined trading range between 1.4148 and 1.42473 since June 19. The topside has been reinforced by a triple top near 1.4247, while the downside has held on four separate tests near the range lows, highlighting the ongoing battle between buyers and sellers.
Near the middle of that range sit the nearly converged 100-hour and 200-hour moving averages, currently around 1.4200. During the early Asian session, buyers attempted to reclaim those moving averages, but sellers leaned against the levels and forced the pair lower. The price fell to a session low near 1.4155 before rebounding, although the recovery once again stalled short of the key moving averages. The pair currently trades around 1.4186.
As long as the price remains below the 100- and 200-hour moving averages, the short-term bias favors the sellers. However, to strengthen that bias, sellers still need to break below the bottom of the range at 1.4147 and then clear the swing low at 1.41297. Moving below the moving averages is an important first step, but there is still work to do before sellers can convincingly wrestle back control from the buyers.
On the other hand, a move back above the 100- and 200-hour moving averages would hand the near-term advantage back to the buyers and shift the focus toward the triple-top resistance at 1.4247. A sustained break above that ceiling would signal a bullish breakout from the month-long range and open the door toward the 61.8% retracement of the decline from the January 31, 2025 high to the January 29, 2026 low, which comes in at 1.42928.
This article was written by fl932d6e52a19643278e0f123bca7198f5 at investinglive.com.
