The USDCAD has reached a triple top resistance level of 1.42473, unable to break through despite recent rallies. Traders should watch for key support and moving averages as the next moves could shift
Since May 1st, the USDCAD pair has been in an uptrend, rallying from 1.35492 to last week's high of 1.42473 on both Wednesday and Thursday. However, this peak was not enough to push the currency higher as sellers resisted at these levels.
Yesterday, after opening below its 100-hour moving average, the pair attempted a recovery during the trading session but closed lower due to seller pressure. Today's Asian-Pacific session saw buyers regain control, pushing USDCAD back above this key technical level now at 1.42097.
Despite these attempts, the triple top resistance remains unbroken as sellers have consistently stopped any upward momentum near 1.42473 for three consecutive tests. Currently trading around 1.4223, buyers are still struggling to break through this critical level of resistance.
The technical picture favors bulls with key support at the 100-hour moving average (now at 1.42097). A move below this could provide sellers a modest near-term advantage but would need to be sustained for more significant implications. The next target is the rising 200-hour moving average at 1.4189, and staying below it would shift control back to sellers.
For now, as long as USDCAD remains above its key technical levels, bullish sentiment prevails. However, traders should closely watch for any break of these support areas or the triple top resistance level, which could signal a change in market dynamics.
Source: InvestingLive. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.