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USDCAD remains capped in tight range as 100-day support holds
The pair is testing support near its 100-day moving average at 1.39167 after a selloff tied to stronger Canadian jobs data and weaker US employment data.
USDCAD is trading in a very tight 16-pip range, with buyers and sellers battling near a key technical support level, Forexlive reports. Traders are watching for a range break to determine the next momentum leg, while the broader bias remains tilted to the downside.
The move lower follows Friday’s stronger-than-expected Canadian jobs report and weaker-than-expected US employment data, which sent the pair sharply down away from its falling 100-hour moving average. Price also moved through a prior swing area between 1.3948 and 1.3966, and the pair’s next major focus for sellers is the rising 100-day moving average at 1.39167.
Recent trading has repeatedly held just above the 100-day MA, with Friday’s low at 1.39248 and Monday’s low and today’s low both near 1.3929. Forexlive says sellers need to push below 1.39167 to gain firmer control, which would put the 50% midpoint of the May 1 to June 24 up-move at 1.3899 in play, followed by the 200-day moving average at 1.38547.
On the upside, buyers would need to reclaim the low of the broken swing area at 1.3948 first, then the top of that zone at 1.3966. Forexlive adds that failing to regain even that initial resistance keeps the bearish bias intact, with the 100-day MA at 1.39167 acting as the next critical support.