The USDCAD is consolidating near last week’s lows, with price action remaining confined within a narrow 27-pip range so far today. On Friday, the pair fell sharply after Chair Powell’s speech at Jackson Hole, driving the price down toward the swing-area low between 1.38127 and 1.38315. In early Asian trading today, the corrective high reached 1.3843 before sellers pushed the pair back to a session low near 1.38161—just above the bottom of that same swing area.
The muted activity is partly explained by the London holiday, which has suppressed volumes. Still, traders are keeping a close watch on the rising 100-bar moving average on the 4-hour chart at 1.38016. That average has acted as reliable support over the last 3–4 weeks, and its steady climb makes it an increasingly accessible downside test.
A break below 1.38016 would shift the bias in the short term, opening the door toward the 100-day moving average at 1.37676 and the 200-bar MA on the 4-hour chart at 1.37539. Until then, buyers will try to lean against the support and keep the consolidation intact, while sellers look for momentum through that key technical floor.
This article was written by Greg Michalowski at investinglive.com.