USD/CAD pulled back after sellers defended the 100-day moving average near 1.3915, pushing the pair back into a support band between 1.3867 and 1.3882. The pair now sits pinned between that resistance and the 200-day moving average near 1.3841, with the next break likely to decide near-term direction.
Sellers defend the 100-day moving average
USD/CAD is trading lower today, but it remains boxed between key moving averages as buyers and sellers fight for control. The pair reached a new high of 1.3911 in early trading — about four pips short of the 100-day moving average near 1.3915. Sellers leaned against that level and pushed the pair back down, mirroring how buyers had defended the 200-day moving average the week before.
The move followed a rally that began last Friday. The pair found support near the converged 200-hour and 200-day moving averages ahead of Fed Chair Kevin Warsh's more hawkish speech at the Jackson Hole symposium. The resulting rise in US yields sent the dollar sharply higher, lifting USD/CAD from that support cluster toward the 100-day moving average.
Support cluster now in focus
The retreat has brought the price back into a support band between 1.3867 and 1.3882. That zone includes a swing area, the rising 100-hour moving average near 1.3868, and the 38.2% retracement level at 1.3882.
If buyers hold that cluster and push the price higher, the 100-day moving average near 1.3915 stays the key upside target; a sustained move above it would give buyers greater control and open the door to further upside. A sustained break below the 100-hour moving average, however, would weaken the short-term picture and shift focus back toward the converged 200-hour and 200-day moving averages near 1.3848.
For now, USD/CAD stays caught between resistance above and support below, with the next break set to determine who takes control.
Source: InvestingLive
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