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The USDCAD currency pair has experienced a strong bullish rally, climbing over 336 pips from 1.3758 on September 8 to a high of 1.4094. The upward momentum has been supported by technical breaks above critical resistance levels, including the 200-day moving average at 1.3839 and the 100-day moving average at 1.39565. Additionally, the pair cleared key Fibonacci retracement levels, successfully turning the 61.8% retracement level at 1.40503 into technical support during recent pullbacks.
Market bulls recently cleared the 1.4080 resistance, which corresponds to the August swing highs, entering price territory not seen in several months. Technical traders are closely monitoring whether this former ceiling will convert into a reliable floor to sustain further gains. A drop back below 1.4080 could test the rising channel trendline around 1.4060, followed by the critical 100-hour moving average located near 1.40240.
The overall technical structure favors buyers as long as the pair holds above its 100-hour moving average. A breakdown below this indicator would be required to shift short-term bias toward the bears. Moving forward, market participants will be looking at incoming US and Canadian macroeconomic data to determine if fundamental strength supports this technical breakout.
