The USDCAD is climbing higher at the start of the new trading week, supported by the USD’s upward momentum. The pair is approaching two significant technical levels: the 100-bar moving average (MA) on the 4-hour chart and the broken 38.2% retracement of November’s trading range.
These levels were breached on Friday, but the move lacked momentum, leading to a pullback toward 1.3878, a key level corresponding to the 2022 high. Notably, on Friday, the price tested this support twice and rebounded, reinforcing its significance.
- Support: 1.3878 (2022 high).
- Resistance: 1.40417 (broken 38.2% retracement of November 2024 range).
Traders will be watching for momentum around these levels to determine the next directional move.
This article was written by Greg Michalowski at www.forexlive.com. Source