The USDCAD is testing a key resistance zone between 1.3869 and 1.3877, defined by last Thursday's high and a swing area. A break above this zone could lead to further upside targets, while rejection might see sellers regain control.
The battle at the 1.38689–1.3877 resistance zone is critical for determining the next significant move in the USDCAD, impacting traders and investors with positions in this currency pair.
The USDCAD currency pair is currently pushing towards a new session high, testing an important resistance zone that includes last Thursday's high at 1.38689 and extends up to 1.3877. This zone has historically served as both support and resistance since late March. Buyers are aiming for a sustained break above 1.3877 to strengthen their position and potentially target the March high near 1.3948 and the 2026 high around 1.3966. Conversely, if the current swing area acts as a ceiling, sellers may regain traction, leading to a potential move back towards the support cluster between 1.3811 and 1.3822, which includes the 100-hour, 200-hour, and 200-day moving averages. The short-term bias remains with buyers as long as the price trades near the highs, but a decisive break of the 1.38689–1.3877 resistance is crucial for further upward movement.
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