USDCAD moves back to highs for the day

The USDCAD has moved higher, supported in part by weaker oil prices, and is now retesting a key swing area between 1.36058 and 1.36923. Earlier in the session, the pair reached a high near the top of that range but failed to break through, triggering a rotation to the downside.

That pullback took the price down through the 200-hour moving average (green line on the chart above) at 1.36456 and continued lower toward the underside of a broken trendline and swing level at 1.36337. At that level, support buyers stepped in, and the price began to stabilize, basing around the 200-hour moving average before rebounding back to the upside over the last hour or so.

The key question now is whether buyers can sustain momentum and break through the 1.36923 resistance ceiling. If they do, the next upside target becomes the 38.2% retracement of the May high to June low, which sits at 1.37221. A move toward that level would signal stronger bullish intent and a possible shift in medium-term sentiment.

Conversely, holding resistance and the low and high support levels are further defined waiting for the next shove from buyers or sellers