During the Asian and early European trading sessions, the USDCAD pair saw an upward movement, inching closer to a significant technical level. This level is the 50% retracement of the fall from the October 2023 high to the December low, identified at 1.3537. The currency pair reached a daily high of 1.3535, just shy of this pivotal point, before pulling back towards the 1.3500 mark.
Should the pair break below the 1.3500 support, traders’ attention is likely to shift towards the next critical support area around 1.3475. This area is particularly noteworthy as it is where the 200-day Moving Average (MA) and the rising 100-bar MA on the 4-hour chart nearly meet, marking it as a potential pivot point for future movements. While a move above the 1.3537 level could give buyers additional confidence, a slide below 1.3475 would likely embolden sellers, highlighting the importance of these technical levels in determining the USDCAD’s next direction.
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This article was written by Greg Michalowski at www.forexlive.com. Source