USDCAD 200-hour moving average came into focus on Wednesday after the pair fell to a session low of 1.4079. That low left price almost on top of the 200-hour moving average at 1.40792. As a result, traders are watching whether support holds or gives way.
The source article said this moving average has acted as a key pivot in recent sessions. Last Friday, buyers entered after a test of that level. On Monday, the drop stopped just above it. Meanwhile, both Tuesday and Wednesday also saw support return in the same area.
USDCAD 200-Hour Moving Average in Focus
If the pair stays above the USDCAD 200-hour moving average, buyers may still regain near-term control. Their first upside barrier stands at the 100-hour moving average, now at 1.40958. A move above that mark would turn attention back to the former support zone between 1.41297 and 1.41488, which now acts as resistance.
However, a clear break below the 200-hour moving average would favor sellers. The first downside target would be last week’s swing low at 1.4055. If that level breaks, bearish pressure could build further.
Downside Levels Below 1.4055
Below 1.4055, the next area to watch is Monday’s low near 1.4003. That level sits just above the 1.4000 psychological mark. If sellers push through 1.4000, focus would shift to the 38.2% retracement of the rally from the May 1, 2026 low, which comes in at 1.39812.
Later in the day, markets were also looking ahead to the FOMC rate decision at 2 PM. The source said the Fed is expected to leave rates unchanged, although the market prices a 35% chance of tightening. Meanwhile, U.S. yields moved higher, with the two-year yield up 3.0 basis points at 4.307% and the 10-year yield up 2.4 basis points at 4.628%.
Stocks were under pressure as well. The NASDAQ was down 1%, while the S&P was lower by 0.7%.
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Source: InvestingLive
