Home / News / USDCAD Technicals: The USDCAD is trading lower and dipping below the low from last week
USDCAD Technicals: The USDCAD is trading lower and dipping below the low from last week
<p>The USDCAD moved higher at the end of last week following a stronger-than-expected U.S. jobs report and weaker-than-expected Canadian employment data. Fundamentally, that combination should have supported the U.S. dollar against the Canadian dollar.</p><p>However, the price action told a different story—and ultimately, price action deals the cards.</p><p>The post-jobs rally stalled within a swing area between 1.38669 and 1.3877. Buyers had their shot, but they could not get above that resistance area and stay above it. That failure was the first warning that the fundamental story was not translating into sustained buying.</p><p>When a market cannot rally on news that should be bullish, traders need to pay attention. It often signals that the favorable news may already be priced in—or that larger sellers are using the rally as an opportunity to establish positions.</p><p></p><p>The failed break sent the USDCAD back toward its 200-day moving average at 1.38343. During yesterday’s trading, the price moved above and below that key moving average before finally breaking lower. That tipped the longer-term technical bias more in favor of the sellers.</p><p>The downside momentum continued today, taking the pair into a swing area between 1.3765 and 1.3778. The initial test attracted buyers, but the subsequent rebound stalled ahead of the falling 100-hour moving average, currently near 1.38138.</p><p>That was another bearish clue.</p><p>Not only did the price remain below the broken
Higher education in Financial Engineering and Money & Capital Markets. SPK (Turkey CMB) licence. 16 years across institutional markets, research, and quant-driven analytics.
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<p>The USDCAD moved higher at the end of last week following a stronger-than-expected U.S. jobs report and weaker-than-expected Canadian employment data. Fundamentally, that combination should have supported the U.S. dollar against the Canadian dollar.</p><p>However, the price action told a different story—and ultimately, price action deals the cards.</p><p>The post-jobs rally stalled within a swing area between 1.38669 and 1.3877. Buyers had their shot, but they could not get above that resistance area and stay above it. That failure was the first warning that the fundamental story was not translating into sustained buying.</p><p>When a market cannot rally on news that should be bullish, traders need to pay attention. It often signals that the favorable news may already be priced in—or that larger sellers are using the rally as an opportunity to establish positions.</p><p></p><p>The failed break sent the USDCAD back toward its 200-day moving average at 1.38343. During yesterday’s trading, the price moved above and below that key moving average before finally breaking lower. That tipped the longer-term technical bias more in favor of the sellers.</p><p>The downside momentum continued today, taking the pair into a swing area between 1.3765 and 1.3778. The initial test attracted buyers, but the subsequent rebound stalled ahead of the falling 100-hour moving average, currently near 1.38138.</p><p>That was another bearish clue.</p><p>Not only did the price remain below the broken
