The USDCAD has witnessed a significant shift as it moved below the 100-hour moving average (MA) and a nearby swing area around 1.35839 (indicated by red numbered circles and the blue moving average line). The price has plunged to a low of 1.3363, with the focus now on the MA level. Sustained trading below this level would lean toward a more bearish sentiment.
On the downside, the price has entered a swing area (highlighted by green numbered circles) between 1.3553 and 1.3566. A break below this area would prompt traders to shift their attention to the 100-day moving average at 1.35268. Notably, this level aligns with the 38.2% retracement of the April trading range and resides within a swing low region (support) between 1.3521 and 1.35268. Sellers are positioning themselves accordingly, making a strategic move. Sellers are in control in the short term at least.
Significant resistance now lies at 1.35839 (with a more conservative level at 1.35934) for sellers. Conversely, on the downside, if selling pressure persists, the 100-day moving average could become a target, serving as a crucial level to observe how market traders react upon a retest.
