The USDCAD skims along support while resistance pushes from above. A break looms.

The USDCAD currency pair is currently engaged in a dynamic tug-of-war between buyers and sellers.

A technical analysis reveals that today’s activities have hovered precariously above the a key support level, determined by 50% of the upward swing from the low of October 2021 to the high of October 2022. That midpoint is situated at 1.3132. The lowest point today touched 1.3135, just a tad above this benchmark, prompting buyer intervention that led to a subsequent price increase.

On the upper end, today’s peak fell just shy of the swing area located at 1.31778. Beyond this point lies the declining 100-hour Moving Average (MA), represented by a blue line. A sustained breach of these points could bolster bullish tendencies. Concurrently, traders are keenly watching the 200-hour MA (shown in green), a threshold which has remained unbroken since the commencement of June, currently standing at 1.32139.

Thus, we find the market in a fierce struggle between buyers and sellers, with support and resistance levels closing in on each other. At a certain juncture, an inevitable breakout is expected, which should trigger a significant price movement. Market participants should remain vigilant and be ready for potential opportunities.

This article was written by Greg Michalowski at Source