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USDCAD drops near 200-hour moving average as 1.4000 looms

The pair was recently at 1.4079, and a sustained move below its 200-hour moving average could push sellers toward last week’s 1.4055 low and the 1.4000 level.

Reported · Written up by our desk · Major Pairs

USDCAD slid to a new session low around 1.4079, putting traders’ focus on the pair’s 200-hour moving average near 1.40792, a technical level that has acted as a pivot over recent sessions, according to Forexlive.

Forexlive said price action has been supported around that moving average recently, but the outlook depends on whether USDCAD holds above it. Buyers would need to clear the 100-hour moving average near 1.40958 to shift the near-term bias upward, with the former support zone between 1.41297 and 1.41488 identified as resistance if that happens.

On the downside, Forexlive noted that a sustained break below the 200-hour moving average would return control to sellers. The first objective would be last week’s swing low near 1.4055, followed by Monday’s low around 1.4003 just above the 1.4000 psychological level, with further downside tied to a 38.2% retracement around 1.39812.

The move comes ahead of the FOMC rate decision later today at 2 PM, with the Fed expected to keep rates unchanged and markets pricing a 35% chance of a tightening outcome, Forexlive reported. It also cited higher US yields alongside broader equity weakness, including the Nasdaq down about 1% and the S&P down 0.7%.

Latest closeNasdaq Comp. 24,876.91 ▼0.2%

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