The USDCAD moved back above the 200-bar moving average on the 4-hour chart (currently at 1.3957) yeasteray, and found support against it during today’s pullback. That level now serves as immediate support, and holding above it keeps the near-term bullish bias intact.

On the topside, the 200-day moving average at 1.40126 remains a key upside target, reinforced by a swing area resistance between 1.40097 and 1.40268. Earlier this week, the high price stalled within this zone, just above the 200-day MA.

A break above that resistance area would open the door toward the 38.2% retracement of the March decline at 1.40525, which is the next critical hurdle for buyers aiming to regain firmer control.

On the downside, a move back below 1.3957 could trigger a rotation toward the next key support swing area between 1.38917 and 1.3904, which held the low yesterday and earlier this week.

The battle is on between the dip buyers and the rally sellers. Traders wait for the next break.

Key levels:

• Support: 1.3957 (200-bar MA on H4), 1.38917–1.3904 (swing area)

• Resistance: 1.40126 (200-day MA), 1.40097–1.40268 (swing area), 1.40525 (38.2% retracement)