USDCAD 200-day moving average came into focus on Friday after the pair fell to a new weekly low of 1.3868 and broke below several chart levels.
The pair moved under its 100-day moving average at 1.39185 and slipped below Wednesday’s low of 1.3908. As a result, the week’s narrow range widened. Monday marked the high at 1.3964, and the latest drop pushed the spread for the week to almost 100 pips.
The move also added to the decline that has been in place since USDCAD peaked in mid-June. Earlier this week, price failed in the 1.3948 to 1.3966 resistance zone. It then moved below the 100-hour moving average at 1.39295 and the 100-day moving average at 1.39185.
USDCAD 200-Day Moving Average Nears
Notably, USDCAD also broke below the 50% midpoint of the rise from the May 1 low near 1.3550 to the June 24 high at 1.4247. That midpoint stood at 1.3899, or about 1.3900. The break below that mark gave sellers another technical win.
Friday’s low briefly moved under the bottom of a swing area between 1.38683 and 1.3877. However, the decline stalled before two nearby downside targets. Those levels are a channel trendline near 1.3859 and the USDCAD 200-day moving average at 1.3852.
Sellers Hold Control Below Key Levels
The 200-day moving average remains a key level because USDCAD last traded below it around June 1. At that time, the pair based near the moving average around 1.3810 and then turned sharply higher. That rebound later carried the pair to its 2026 high of 1.4247 on June 24.
Since then, the 200-day moving average has risen to 1.3852. Therefore, it now stands as the next major test for both sides. A break below that level would mark another bearish technical step and could clear the way for more downside.
However, a bounce from the 200-day moving average alone would not change the broader picture. Buyers would need to push the pair back above the 100-day and 100-hour moving averages in the 1.3920 to 1.3930 area to weaken the current selling pressure.
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Source: InvestingLive
