USDCAD 200-hour moving average stayed in focus on Wednesday after the pair pulled back from 1.4111 and found buyers near 1.40779.
The pair had jumped earlier this week after the United States announced 50% tariffs on selected Canadian goods. That move lifted the U.S. dollar against the Canadian dollar. As a result, USDCAD recovered from this week’s lows and improved the near-term picture for buyers.
The rally peaked on Tuesday when the pair moved above its 200-hour moving average for the first time since July 8. That break marked a key shift after nearly two weeks below the longer-term intraday trend gauge. However, the advance stalled near 1.4116, an area set by the July 10 swing low and the July 14 swing high.
USDCAD 200-Hour Moving Average Tested
On Wednesday, the pair failed to clear that resistance zone and turned lower. During the European session, the drop brought USDCAD back to the 200-hour moving average. Meanwhile, early North American trading tested that level again.
The 200-hour moving average stood at 1.40779. Today’s low touched 1.40778 before modest buying appeared. The pair then traded near 1.40823.
As long as USDCAD stays above the 200-hour moving average, buyers keep a modest technical edge. However, a sustained move below that level would weaken the recent bullish bias. In that case, traders would look toward the rising 100-hour moving average at 1.40541.
Broader Trend Still Favors Buyers
A break below both moving averages would point to renewed short-term control for sellers. Consequently, that could raise the chance of a deeper pullback. For now, the 200-hour level remains the main near-term barometer.
The week’s low came at 1.4003, just above the 1.4000 mark. That decline also held above the 38.2% retracement of the move from the early May low to the triple-top highs near 1.42473 seen in the second half of June. Therefore, the broader uptrend remains intact unless sellers push the pair below the 200-hour and 100-hour moving averages and then break that retracement level.
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Source: InvestingLive
