The USDCAD bottomed last Friday at 1.37315 before gapping higher over the weekend after trade talks between the U.S. and Canada soured.
The deterioration in trade relations helped fuel upside momentum, taking the pair back above the 100-hour moving average, the 200-day moving average, and the 200-hour moving average
The advance continued yesterday, with the price also breaking above the 38.2% retracement of the decline from the July 28 high at 1.3882. The rally ultimately reached 1.38922. Today, however, buyers could only push the price to 1.3891—just short of yesterday’s high.
The failure to extend to a new high, followed by a move back below the 38.2% retracement at 1.3882, gave sellers the go-ahead to push the pair lower. The price has since fallen to a low of 1.3853 and is approaching a key cluster of moving-average support between 1.38376 and 1.38430. That area includes the rising 100-hour moving average, the 200-day moving average, and the 200-hour moving average.