The USDCAD is stretching to the upside in early US trading & tests a key MA level | Forexlive

The USDCAD is trending higher in early U.S. trading, currently testing the 200-hour moving average MA (green line currently at 1.43619), a critical level for both buyers and sellers. Earlier today at day lows, buyers defended the 100-hour MA ( blue line at 1.4318), preventing further downside, giving them control of the short-term trend. However, upside momentum faces key resistance levels ahead.

Key Levels & Market Structure

• Support Levels:

  • 100-hour MA (1.4318) held earlier, providing a base for buyers.
  • The weekly low coincided with a key value area (red box), reinforcing it as a strong support zone. That level comes in at 1.4268 and will remain a key level that if broken would increase the bearish bias.

• Resistance Levels:

  • 200-hour MA (~1.4360) is the immediate hurdle; breaking above it would confirm further upside.
  • 1.4448 – 1.4471 (highlighted yellow zone) serves as a major resistance area where previous price action has struggled.

• Moving Averages:

  • The 100-hour MA (blue line) is below the price, signaling short-term bullish momentum.
  • The 200-hour MA (green line) is being tested, and a break above it would strengthen the bullish case.t.

Outlook & Scenarios

• Bullish Scenario:

  • A break above the 200-hour MA could trigger further upside, targeting 1.4448 – 1.4471.

• Bearish Scenario:

  • If the price fails at the 200-hour MA, expect a pullback toward the 100-hour MA (1.4318).
  • A deeper decline could bring a retest of the value area low (red box), indicating potential weakness.

Conclusion

The bulls have regained control after buyers defended 1.4318, but they need a decisive break above 1.43619 to sustain upward momentum. Sellers had an opportunity earlier but failed to push the price lower, indicating a shift in sentiment. If the 200-hour MA holds as resistance, consolidation or another pullback could follow.