USDCAD Technical Analysis Summary

The recent analysis of the USDCAD currency pair indicates a shift in market dynamics, with a bias returning to the upside after sellers failed to maintain downward momentum. The pair initially moved lower in the early Asian-Pacific session, reaching towards the 38.2% retracement level of the 2026 trading range at 1.36517. This level, which had previously been broken to the upside, acted as a significant technical support zone.

Despite sellers pushing into this support zone, the downside momentum began to stall, suggesting profit-taking and a lack of fresh selling pressure. Following this, the USDCAD pair rebounded, moving back above the 100-hour moving average at 1.3676, which marked a crucial technical pivot in recent sessions. This recovery indicated a shift in short-term control back towards buyers.

However, the bounce lacked strong follow-through, as upside momentum faded before reaching the next key resistance level at the 50% midpoint of the 2026 trading range, located at 1.37045. This resistance level has proven critical, as the pair attempted to break above it on both Thursday and Friday of the previous week, only to see those rallies stall and reverse. This pattern of repeated failure underscores the importance of the 1.37045 level.

Current Technical Battle Lines

• Above the 100-hour MA (1.3676): Buyers maintain a modest edge.
• Below 1.36517 (38.2%): Sellers regain downside momentum.
• Above 1.37045 (50% retracement): Buyers gain stronger control, shifting the broader tone to a more bullish outlook.

At present, buyers have stabilized the pair, but a sustained move above the 1.37045 level is necessary to build confidence and confirm a stronger upside bias. The market remains vigilant as these technical levels will dictate the near-term direction of the USDCAD currency pair.