USDCAD 200-hour moving average moved into focus after the pair climbed above resistance near 1.4066 during Tuesday trade. Earlier in the day, the pair swung between support and resistance in choppy action. Support stood at the 100-hour moving average at 1.4037, while resistance sat at the 200-hour moving average.
The latest move higher pushed USDCAD above the 200-hour moving average. As a result, buyers now have a chance to move out of the day’s back-and-forth range. The next test is whether the pair can stay above that level.
USDCAD 200-Hour Moving Average in Focus
If buyers hold the break, the technical picture turns more constructive. In that case, attention shifts to the next upside levels named in the report. The first target comes at the prior swing low-high near 1.41166.
After that, traders will watch a swing area between 1.41297 and 1.41488. That zone had served as a support floor before, and it now acts as resistance. Therefore, a sustained move above the USDCAD 200-hour moving average could keep those levels in view.
Buyers Test Break Above Resistance
However, the move still needs to hold. If USDCAD falls back below the 200-hour moving average, the pair would return to the same range that shaped trade earlier in the day. That would leave price moving again between the 100-hour moving average below and the 200-hour moving average above.
In that case, the short-term view would turn neutral again. Buyers and sellers would keep battling for control inside that band. For now, the break above 1.4066 marks the key technical point in the session.
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Source: InvestingLive
