The USD/CAD fell earlier in the day as broad dollar selling pressure pushed the pair lower, but buyers found support and helped push the price back towards unchanged levels during the session. In the bounce, the pair rose back above the 100 hourly moving average, which currently stands at 1.3600 – a key technical level and a psychologically important round number.
With the price now back above the 100 hourly moving average, attention is shifting higher towards the 200 hourly moving average at 1.36316. This level also corresponds closely with the swing zone between 1.3620 and 1.36305, creating a multi-layered resistance area that traders will be watching closely. As long as the price remains confined between the 100 and 200 hour moving averages, the short-term bias remains more neutral and rotational.
For buyers to regain stronger control, the pair will need to break and hold above the 200 hourly moving average and nearby swing zone resistance. Moving above that area will open the door for a push towards the next ascending targets between 1.3652 and 1.3668. Furthermore, traders will start focusing on the 38.2% retracement of the drop from the April high to the May 1 low, which comes in at 1.37085. This retracement level also coincides with another important swing zone extending towards 1.3715, making it a key upside target area if bullish momentum continues to build.
