The USDCAD is moving higher after bouncing off familiar support yesterday.

USDCAD found support yesterday at 1.4268, a key level marking the lower boundary of the “Red Box” range that has contained price action since mid-December. Buyers leaned against this area, leading to a rebound in today's session.

The upside move has met resistance at the 200-bar moving average on the 4-hour chart at 1.4333, where sellers have so far stalled momentum. A break above this level would open the door toward the next upside targets:

• 50% retracement level at 1.4345
• 200-hour moving average at 1.4374
• 100-bar moving average on the 4-hour chart at 1.4376

For buyers, clearing these levels would strengthen bullish momentum, with potential for further upside continuation. However, failure to break above the 200-bar MA could see a return to downside testing, with the 1.4268 support zone back in focus.

Key Technical Levels:

• Resistance: 1.4333 (200-bar MA on 4H), 1.4345 (50% retracement), 1.4374 (200-hour MA), 1.4376 (100-bar MA on 4H)
• Support: 1.4268 (Lower range support)

Momentum favors further gains if buyers can push above the 200-bar MA, but failure there could keep the pair within the broader range.

The video above, explains the technicals in play and also explains why they are so important.