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USDCAD Surges Above August Highs, Buyers Maintain Control
The USDCAD currency pair has experienced a significant upward movement, climbing from 1.3758 on September 8 to a peak of 1.4094 as of today, marking a gain of 336 pips. This upward trend has been characterized by a series of technical breaks, including surpassing the 200-day moving average at 1.3839 and the 100-day moving average currently at 1.39565. Additionally, the pair has moved past key retracement levels, including the 50% midpoint of the decline from the June 24 high at 1.39894 and the 61.8% retracement at 1.40503.
Today's trading saw the USDCAD maintain a low of 1.4058, remaining above the critical 61.8% retracement level. Buyers have shown resilience at this level, allowing the price to continue its upward trajectory. The pair also broke through the 1.4080 level, which corresponds to swing highs from early August, indicating strong buyer interest as it enters a price range that has not been recently traded.
Looking ahead, the ability of the USDCAD to hold above the 1.4080 level will be crucial. If this level can act as support, it would signify a strong position for buyers. Conversely, a drop below this threshold could signal a loss of momentum for the current trend. Traders will also be monitoring the rising channel trendline near 1.4060 and the 100-hour moving average at 1.40240, as these levels will be key indicators of market direction. The next target for buyers, should the upward trend continue, is the swing area between 1.41297 and 1.41488, which would bring the pair closer to the broader consolidation area that peaked at 1.42474 on June 24, 2025.
Source: KLEA News