USD/CAD Stalls Below 100-Hour MA as Bulls and Bears Battle
USD/CAD sellers repeatedly fail to extend downside momentum while buyers defend key support, leaving the pair trapped in a narrow technical range.
USD/CAD buyers pushed the pair higher during early Asian trading Monday only to run into a wall of sellers at the falling 100-hour moving average near 1.41685 — marking the third straight session that level has rejected a rally and reinforcing a bearish short-term technical bias for the currency pair.
The persistent resistance at the 100-hour moving average tells only half the story. Sellers have their own frustrations: despite engineering multiple breaks below key support in the 1.41297–1.41386 swing zone — a region that held as a floor following a June 18 breakout — they have been unable to translate those breaks into sustained downside pressure. Friday's dip to 1.41166 and Monday's test near 1.41260 both attracted buyers who quickly reversed the pair higher.
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The back-and-forth price action points to a market caught in a classic standoff. Bears control the ceiling via the falling moving average, while bulls continue to defend the lower boundary of the recent range. Neither camp has gained the conviction needed to set a clear directional tone, leaving momentum traders sidelined.
Technically, the immediate hurdle for any bullish recovery is 1.41488. A reclaim and sustained hold above that swing level would refocus attention on the 100-hour moving average at 1.41685. Only a clean break above the moving average would meaningfully shift the bias toward buyers and open the door for further upside. Until then, the pair remains in limbo, with each test of support and resistance adding weight to an increasingly coiled technical setup.
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