USDCAD is confined to a narrow range and waiting for the next shove

The USDCAD traded within a narrow 84-pip range last week, with choppy up-and-down price action. Initially, the pair stalled against the 200-hour moving average (1.4210) after breaking above the 100-hour moving average (1.4200). As these moving averages converged, price movements above and below them lacked momentum, reflecting indecision among traders.

Today, USDCAD opened above the moving averages, dipped below them during the Asian session, and has since rebounded above those levels. However, momentum remains weak, with traders seeking a stronger push in either direction. Technically, buyers hold a slight advantage above the 100-hour moving average at 1.4200, which serves as key short-term support.

On the upside, a break above last week’s highs at 1.4235–1.4246 would strengthen the bullish bias, with a potential move toward the 1.4260–1.4269 resistance zone. Conversely, a drop below 1.4200 could shift focus to last week’s low at 1.4165, followed by the year-to-date low at 1.4150 and the rising 100-day moving average at 1.4133, a level not breached since October 2024.

Technical Levels:

Support:

• 1.4200 – 100-hour moving average (key short-term support)
• 1.4165 – Last week’s low
• 1.4150 – Year-to-date low
• 1.4133 – Rising 100-day moving average (not broken since October 2024)

Resistance:

• 1.4235–1.4246 – Last week’s highs (breakout point for bullish momentum)
• 1.4260–1.4269 – Next key resistance/swing area

Thers is room to roam, to the topside but the baby-steps need to be taken first.

This article was written by Greg Michalowski at www.forexlive.com.