The USDCAD has risen after finding support at 1.4268, a level that has defined price action since mid-December. This led to a rebound, with buyers stepping in at this key support.
Resistance has emerged at the 200-bar moving average on the 4-hour chart, located at 1.4333. A breakthrough at this level could lead to further targets of 1.4345, 1.4374, and 1.4376.
Potential Breakout Levels
For buyers, surpassing these resistance points would enhance upward momentum. Conversely, a failure to breach the 200-bar moving average might redirect attention back to the support level at 1.4268.
Key levels include: Resistance at 1.4333, 1.4345, 1.4374, and 1.4376, with support at 1.4268.
The initial discussion highlights the recent bounce in the US dollar against the Canadian dollar. Buying pressure strengthened after prices reached 1.4268, a mark that has repeatedly influenced trading direction since December. This suggests that participants in the market continue to view this level as an area where demand overtakes supply.
From there, the price moved higher, but now an obstacle has appeared. The 200-bar moving average on the 4-hour chart, positioned at 1.4333, has become a hurdle. When price approaches this point, sellers have shown themselves, preventing further upward movement for now. If this level gives way, additional buying could drive prices towards 1.4345, 1.4374, and 1.4376, where further roadblocks could emerge.
Market Sentiment And Strategy
As traders, we must monitor whether buyers have enough persistence to push beyond these points. A failure to break higher may reduce confidence and shift focus back towards the familiar 1.4268 level, where recent rebounds have originated. The ability of this area to hold, should it be tested again, will be closely watched.
For those involved in price movements, understanding these reference points helps in making adjustments. At the moment, the 200-bar moving average remains a threshold. Should prices stay below, near-term pressures may favour sellers. However, a move above it could alter that balance, potentially triggering further advances towards the next resistance targets outlined earlier.
