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USDCAD stalls after rebound into 1.3948–1.3966 zone
Sellers regained control after the pair moved above a falling 100-hour moving average and later slipped back below it, refocusing attention on the 100-day moving average at 1.39186.
USDCAD slipped below its 100-day moving average at 1.39186, giving sellers a chance to extend the downside, but the move lacked follow-through as the price quickly snapped back higher and traded back toward a falling 100-hour moving average and a swing area between 1.3948 and 1.3966, according to Forexlive.
In North American trading, the pair rebounded again, pushing above the falling 100-hour moving average around 1.39383 and moving into the 1.3948 to 1.3966 zone, but that advance failed. Sellers leaned on resistance in that band, stalled the rise, and turned the price back to the downside, bringing the short-term technical bias more firmly in favor of the sellers.
Forexlive said sellers need to get and stay below the 100-day moving average at 1.39186 to improve bearish conviction and open the door to another leg lower. If that happens, potential next downside targets are near 1.3900 natural support and the 50% midpoint of the broader move.
If price action fails again at the 100-day moving average, Forexlive noted buyers may be encouraged to step back in. The outlet also pointed to the July U.S. PPI report coming in softer than expected as supporting evidence that inflation pressures cooled during the month.