USD/CAD Stuck in No-Man's Land as Sellers Lose Nerve
Bears keep failing to sustain breaks below key support while bulls can't crack the 100-hour MA. Classic range trap.
USD/CAD is stuck, and both sides are getting frustrated. Three straight sessions, three rejections at the falling 100-hour moving average near 1.41685. That level is the line in the sand right now. Every rally into it gets sold. Every dip gets bought. Neither camp is winning cleanly.
Here's the problem for bears: they got the breaks they wanted and did nothing with them. Friday saw price slide below the 1.41488 swing level and punch through the 1.41297–1.41386 support zone — a zone that held as a floor ever since the June 18 breakout. The pair even stretched down to 1.41166. Should've been a green light for follow-through selling. Instead, buyers piled back in and wiped the move.
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Today was a replay. Price dipped to 1.41260, briefly trading below that swing area again, and sellers still couldn't hold it. That's two consecutive failed breakdowns. When bears can't convert on back-to-back setups, the market is sending you a message: there's real demand sitting under this thing.
So what's the trade? Watch 1.41488 first. A reclaim of that level — and a close above it — flips focus back toward 1.41685 and that stubborn 100-hour MA. Bulls need to clear the moving average to shift this pair into a genuine upside bias. Until that happens, you're chopping inside a compressed range where fading the extremes is the only game that's paid.
Don't chase breaks in either direction until momentum confirms. This pair is still making up its mind. Continue reading at Forexlive.
