Technical Analysis of USDCAD
On November 7, 2025, the USDCAD currency pair exhibited significant volatility influenced by tariff news and stronger-than-expected Canadian jobs data. This analysis highlights the key technical movements and potential future trends for traders.
Market Movements
The USDCAD initially spiked higher due to tariff news but subsequently declined following the release of robust Canadian employment figures. During the Asian session, buyers entered the market at earlier lows, indicating a potential reversal.
Technical Levels
Key technical indicators were observed during this trading session:
- The pair dipped below the 100-hour moving average at 1.3675 but found support near the earlier session low.
- A bounce from this support led to a retest of the 100-hour moving average, where buying pressure emerged.
- After breaking back above the 100-hour MA, the market saw a shift from sellers to buyers, reinforcing bullish sentiment.
Critical Resistance and Support
The price has rebounded to levels seen prior to the jobs data release, setting up a critical test at the 1.3700 level. A sustained move above this level could indicate further upside momentum:
- The next key target is the 38.2% retracement level of the decline from the May high, located at 1.37208.
- Earlier in the day, the price briefly spiked above this level due to headlines regarding Canadian tariffs of 35%.
- A break and hold above 1.37208 would strengthen the bullish bias and suggest a potential shift towards broader upside for USDCAD.
Conclusion
Traders should closely monitor the USDCAD pair for potential breakouts above key resistance levels, particularly 1.3700 and 1.37208, as these could signal a continuation of bullish momentum in the market.