USDCAD rebound tests key resistance zone | Forexlive

The USDCAD rebounded sharply after finding support near a prior swing low at 1.3591 and pushing back above both the 61.8% retracement and a key swing area between 1.36337 and 1.3650. That move shifted the short-term bias more in favor of buyers.

Momentum carried the pair up to test the 100-hour moving average and the 50% retracement of the June decline, both converging between 1.36599 and 1.3668 with the high at 1.3665. This dual technical confluence is acting as initial resistance, and so far, sellers are leaning against the zone.

A break above 1.36688 would open the door for further upside, while a move back below 1.3650 could see downside pressure re-emerge, particularly if the price slips back below the 61.8% and low of swing area down to 1.36337.

Key levels to watch:

• Resistance: 1.36599–1.36688 (100-hour MA and 50% retracement). Move above and the 200 hour MA will be targeted at 1.3693.

• Support: 1.36337–1.3650 (swing zone),

• Bias: Bullish above 1.3650, with key hurdle at the resistance confluence