The pair tests key support after failing to break resistance at 1.4116, with buyers defending the 200-hour moving average.
USDCAD pulled back from a high of 1.4111 after encountering resistance near 1.4116, a level defined by prior swing lows and highs. The retreat followed a sharp rally earlier in the week, driven by U.S. tariffs on Canadian goods, which bolstered the dollar against the loonie.
The pair had reclaimed its 200-hour moving average at 1.4078, a key technical level last breached on July 8. After testing this support, modest buying emerged, lifting the pair to around 1.4082. The 200-hour MA remains critical for short-term direction.
Traders are watching whether buyers can sustain momentum above this level or if a deeper correction unfolds. The pair’s failure to extend gains beyond 1.4116 suggests waning upside pressure for now.