The USDCAD extended its decline yesterday's's, breaking below the April 21 low of 1.3781 and reaching a new low going back to October 2024 at 1.3769, before quickly snapping back higher.

In today’s session, the pair once again tested the 1.3781 level, reaching 1.3783 before bouncing. Sellers turned to buyers, and the price has since pushed above the 1.3825 swing area and climbed through the 100- and 200-hour moving averages, now at 1.3837 and 1.3841, respectively. These moving averages now serve as close support.

Holding above these levels keeps the bullish rebound in play, with key upside targets at:

• 1.38917 – high from this week

• 1.3904 – high from last week

A break above 1.3904 would take USDCAD out of the range-bound structure that has confined the pair since April 16 (see red box), opening the door to further gains.

For now the focus will be on the moving averages as parameters for them more bullish bias above or a more bearish bias on a break below periods