Today, the USDCAD pair reached its highest level since March 30, 2023, briefly surpassing Friday's high at 1.35627. However, the price could only climb to 1.3566 before swiftly reversing course. Buyers attempted to push the price higher but were unsuccessful - they failed. The subsequent decline brought the price back below the lower 100-day moving average at 1.35268 (blue step line on the chart above). Although the low reached 1.35216, the momentum faded, and the price bounced back up.
The price returned to the 50% retracement level and the swing area between 1.3553 and 1.35638, where sellers took control, driving the price back down to retest the 100-day moving average. The price action today, highlights traders reluctance around key technical levels that range from 1.35638 to 1.35268.
As such, it appears that the USDCAD is exhibiting the same "consolidation up-and-down fever" that affected most other currencies against the US dollar last week. Unlike those pairs, the USDCAD trended higher with a solid range for the week. As a result, in the short term, the USDCAD is seeking a more decisive move either below the 100-day moving average or above the swing area up to 1.35638. Until then, the pair remains confined in the narrow range.