USDCAD weekly outlook points to a pair that stayed higher on the week after sharp swings, with price last near 1.4087 and the 200-hour moving average near 1.4061.
The pair found support on Monday at 1.4003, just above the 1.4000 level. Buyers then pushed USDCAD back above the 100-hour moving average. The move stretched into Tuesday. However, the rally first paused ahead of the 200-hour moving average before buyers broke through later that day.
That advance carried the pair close to the July 10 swing low at 1.4116. Momentum then faded. A pullback followed, but buyers defended the 100-hour and 200-hour moving averages on Thursday. Today, price briefly fell below the 100-hour moving average. However, support from the rising 200-hour moving average helped trigger another bounce.
USDCAD Weekly Outlook Keeps Focus on 1.4061
That rebound lifted the pair to 1.4114, a new high for the week. It stopped two pips short of 1.4116. Sellers then returned, and the pair turned lower.
Since Tuesday, buyers have kept defending the hourly moving averages despite the choppy trade. Notably, the 200-hour moving average stands out as the more important level. It now sits near 1.4061. As long as USDCAD stays above that mark, buyers keep the near-term technical edge.
Resistance Zone Caps the Latest Advance
A clear move back below the 100-hour and 200-hour moving averages would weaken that setup. If that happens, recent buyers could turn into sellers. As a result, focus would shift back to the 1.4000 to 1.4003 lows from Friday and Monday. The 38.2% retracement of the rally from the May low to the June high at 1.3981 would also come into view.
On the upside, the key barrier runs from 1.4116 to 1.4148. That area was a support floor from mid-June through mid-July. Therefore, a sustained break above that zone would mark another win for buyers and could support more upside momentum.
Trade headlines also shaped the week. The Trump administration put in place a new tariff framework with 10% or 12.5% duties on imports from dozens of countries. Canada received the 10% rate. However, tariffs on steel, aluminum, and copper stayed in place, and the new framework supported the U.S. dollar.
You can access our other news on Forex markets and global market developments here.
Source: InvestingLive
