USDCAD moving average resistance remained in focus on Friday as the pair climbed to 1.4057, reversing declines from Wednesday and Thursday. The move came as Treasury yields rose again, with the 2-year yield up 6.2 basis points and the 10-year yield higher by 6.7 basis points. This time, the U.S. dollar moved higher with yields, and USDCAD joined that advance.
Thursday’s drop had followed broad U.S. dollar selling. The source article said that move came in sympathy with a sharp fall in USDJPY amid intervention speculation. It also noted that the selling happened even though Treasury yields had moved higher after the FOMC decision.
USDCAD Moving Average Resistance Nears
From a technical view, the earlier decline pushed the pair close to the 38.2% retracement of the rally from the early May low. USDCAD touched 1.3990, which left it 9 pips above the retracement level at 1.39812. Because sellers could not reach or break that mark, the source said the recent fall still counts as a normal correction within a broader bullish trend.
Friday’s rebound then brought the pair near a key resistance band. The 100-hour moving average stood at 1.4071, or 14 pips above the session high of 1.4057. Meanwhile, the 200-hour moving average sat just above at 1.4078, adding to the resistance zone.
Buyers and Sellers Face Key Levels
Buyers need to push USDCAD above both moving averages and hold it there to regain control, according to the source article. If that happens, traders would target this week’s high near 1.4130. Notably, that area also marks the lower edge of a floor and ceiling zone between 1.41297 and 1.41488.
Earlier this week, the pair failed at that resistance area. As a result, sellers gained room to drive the pair lower.
However, sellers still need to break more support levels to shift the picture. The source said they must force the pair below 1.4003 and 1.3990, then break the 38.2% retracement at 1.39812. Until that happens, USDCAD moving average resistance remains the near-term test, while the broader technical edge stays with buyers.
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Source: InvestingLive
