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USDCAD sellers struggle to extend downside after range slips
USDCAD traded below key swing support near 1.41297 to 1.41386, but a quick rebound around 1.41166 suggests buyers are still defending the lower end of the recent range.
USDCAD pushed higher in early Asian trading but repeatedly met sellers around the falling 100-hour moving average near 1.41685, a level that has been used as a short-term directional barometer. The pair has now rejected at that area for a third straight test, keeping bearish short-term technical pressure in place.
Despite the softer bias, sellers have not been able to build follow-through after slipping below key support. Last Friday, USDCAD dipped beneath the 1.41488 swing level and moved into the 1.41297 to 1.41386 swing area that had acted as support since a June 18 breakout, but selling momentum faded quickly.
The pattern repeated again, with the pair hitting a low near 1.41166 and then rebounding after trading around 1.41260. Technically, 1.41488 is described as the first hurdle for bulls, and a move back above that level, followed by holding it, would shift focus toward the 100-hour moving average at 1.41685, with buyers needing a break higher to gain stronger control.
Forexlive reports that a decisive break above the moving average would be required to increase the bullish bias, while current action continues to point to buyers defending the lower boundary of the recent range.