The USDCAD currency pair has experienced a notable ascent over the past three weeks, advancing from a low point around 1.3760 on September 8 to reach a high of 1.4080 today. This upward movement represents a gain of approximately 320 pips across 11 trading days, indicating strong buying interest.
This rally has been underpinned by a series of significant technical breaches. Early in the ascent, on September 11, the pair moved above its 200-day moving average, positioned near 1.38377. Subsequently, on September 16, the 100-day moving average, then at 1.3952, was also surpassed. These technical breaks are often monitored by retail forex and CFD traders as potential indicators of shifting market sentiment and momentum.
Further reinforcing the bullish momentum, the pair climbed past the 50% Fibonacci retracement level of its decline from the June 24 high to the August 21 low, which was located at 1.39894. More recently, buyers pushed the price beyond the 61.8% Fibonacci retracement level, situated at 1.40503. Each of these technical achievements has seemingly bolstered market confidence among buyers, strengthening the overall upward trajectory.
Current Market Test at 1.4080
Currently, the USDCAD pair is engaging with a critical resistance area around 1.4080. This level is particularly significant as it aligns with previous swing highs observed on August 4 and August 5. The market's reaction to this specific price point could be pivotal in determining the pair's immediate future direction.
- A sustained breakthrough above 1.4080 would likely signal further upside potential, potentially shifting market attention towards a subsequent resistance zone between 1.4129 and 1.4148.
- Conversely, a failure to overcome this resistance could lead to a consolidation or a pullback, as buyers might pause or take profits.
The ongoing test of the 1.4080 level is a key event for traders watching the USDCAD, as its outcome could dictate the next phase of price action for the currency pair.
📰 Based on reporting from: ForexLive →