The USDCAD is experiencing resistance at the 200-hour moving average, currently at 1.43485, influencing a bearish market sentiment. Additionally, the price is trading below the 100-hour moving average at 1.43276, indicating continued near-term selling pressure.
Last week, the pair tested the 38.2% retracement level from February’s low at 1.4319, but reversed quickly after a brief breach. Key support levels are identified within the range of 1.4268–1.42789 and are reinforced by the 100-day moving average nearby.
Key Support And Resistance Levels
If these support levels are breached, it may lead to increased downward momentum in the currency pair. Key resistance levels include the 100-hour MA at 1.43276, the 200-hour MA, and the 38.2% Fibonacci retracement at 1.43916.
The current movement of the pair indicates ongoing selling pressure, with resistance holding firm at the 200-hour moving average. Short-term traders will note that its inability to break above this level adds to an overall bearish outlook. The price remains below the 100-hour moving average, suggesting sellers continue to dictate direction in the near term.
Recently, the pair attempted to test a retracement level but was swiftly pushed back, reinforcing a lack of sustained buying interest above that mark. The support zone between 1.4268 and 1.42789 remains a focal point, bolstered by the presence of the 100-day moving average. If this area fails to hold, momentum could shift further to the downside, accelerating selling pressure.
Market Sentiment And Volatility
On the other hand, recovery efforts face multiple barriers, starting with the 100-hour moving average before reaching the 200-hour level. Beyond that, traders would need to assess the 38.2% Fibonacci retracement at 1.43916, which previously acted as a barrier to upside movement.
Given these developments, market participants should be prepared for heightened volatility when prices approach these levels. Those watching shorter-term trends will be paying close attention to whether sellers maintain control near resistance or if buyers can force a shift in momentum. Breaching either key support or resistance would likely trigger sharper moves.
