The currency pair tests multi-month resistance after extending gains post-FOMC, with sellers emerging near 1.4134.
USDCAD climbed to a resistance zone of 1.4130-1.4144 following the FOMC rate decision, reaching a high of 1.4134 before retreating to 1.4117. The pair has been in a steady uptrend since May 1, when it bottomed at 1.3549, and has held above its 100-hour and 200-hour moving averages since early May.
The 100-hour moving average currently stands at 1.4013, while the 200-hour average is at 1.3983, both acting as key support levels. Brief dips below these averages in late May were quickly reversed, reinforcing the bullish momentum. The resistance zone, defined by November 2025 swing highs, now poses a challenge for further gains.
Traders are closely watching this level, as a break above could extend the rally, while a rejection may signal a pullback toward support.