USDCAD Technicals: Recovery stalls at key resistance zone after bounce from yearly low

The USDCAD is testing a key technical area after rebounding from its lowest level of the year at 1.36841 yesterday, a low not seen since October. The pair had extended its slide last week after finding sellers near the 100-hour moving average at 1.3960 on May 20, eventually reaching the recent bottom yesterday.

Today, the pair is probing the 1.37498–1.37724 swing zone, which had acted as prior support. A sustained move above this area would shift short-term momentum more favorably for buyers. The next upside targets include:

• The 100-hour MA at 1.37923

• The 38.2% retracement and swing zone between 1.3809 and 1.3814

Staying below these resistance levels keeps sellers in control, but a break above could open the door for a deeper retracement of the recent decline.

Key Levels:

• Support: 1.37498 (close support from swing area in April/May), 1.3684 (yearly low)

• Resistance: 1.3772 (high swing zone), 1.3792 (falling 100-hour MA), 1.3814 (38.2% retracement)

Traders will be watching for confirmation of direction at this inflection point, with a break above resistance shifting short-term bias to the upside.

Adam Button spoke on the USDCAD in an interview yesterday on BNN Bloomberg TV.

You can see the interview here:

https://www.forexlive.com/news/adam-button-spoke-on-bnn-bloomberg-making-a-bullish-case-for-the-canadian-dollar-20250527/