The USDCAD is pushing higher in early North American trading after buyers successfully defended a key technical support zone during the European session correction. Earlier in the day, the pair slipped back below its 200-hour moving average at 1.3627 (green line on the chart below), and tested the lower boundary of an important swing area support near 1.3620 (see green numbered circles). Recall from yesterday’s analysis that the break above the 1.3620–1.3631 swing area shifted the short-term bias back in favor of the buyers.
As noted yesterday (see post here), the key for buyers was to hold above that broken resistance zone to confirm the breakout and build a stronger technical foundation for additional upside momentum. Today’s low reached 1.3621 — just above the lower edge of the support area — before the pair rotated back to the upside. The successful hold keeps the buyers in short-term control and reinforces the importance of that zone as a risk-defining level going forward.
With the rebound now underway, buyers are once again targeting the session high at 1.3643. A break above that level would open the door toward the next resistance target near 1.3666 (see red circles). Beyond that, stronger resistance comes in between 1.3708 and 1.3715 — a key swing area that capped rallies repeatedly between April 16 and April 29. Just above that zone sits the falling 100-day moving average, currently near 1.3721 and still drifting lower, adding another layer of technical resistance.
For buyers to maintain control, the pair needs to stay above the 1.3620–1.3631 support zone. A move back below that area would weaken the bullish breakout story and could shift momentum back in favor of the sellers.