The USDCAD is rising in early North American trading, supported by better initial jobless claims data. After bouncing off the 1.3555 support level, the pair is maintaining a strong upward trend, staying above the 2025 low of 1.35389. This bounce has helped keep the overall bullish momentum going. A low point formed in an important range between 1.3617 and 1.3633, which has acted as both support and resistance in the past. Currently, the price is above the 100-bar and 200-bar moving averages on the 4-hour chart, near 1.3670–1.36835. Moving back above these averages indicates a return to buyer control, especially since the price had fallen below them earlier. The first target is this week’s high at 1.37094, followed by the 38.2% retracement from the drop that started in April, at 1.37208. If the price breaks above this, more gains could follow, with the target area at 1.37498 to 1.3759. If the price stays above this area, it could signal a medium-term bullish breakout. However, if it falls back below the 100-bar and 200-bar MAs, the current bullish momentum may fade. Buyers are in control as long as the price stays above these levels. The original points highlight a recovery in the USDCAD, driven by strong US jobless claims data. This suggests a resilient labor market and supports the US dollar. The technical setup shows a move away from previous lows, with prices rising above key moving averages on the 4-hour chart. This shift usually indicates positive sentiment among market participants, especially as pricing used the 1.3555 level as a launch point. The rise above the 100-bar and 200-bar averages around 1.3670 suggests renewed confidence. Previously, these averages acted as resistance but may now provide support if there’s a pullback. The next level to watch is 1.37094, the recent weekly high, followed by the retracement level from the April drop near 1.37208. If upward pressure continues, we could see the price approach just below 1.3760, a level it has struggled with before. Traders in short-term derivatives, especially those dealing with intra-day or multi-session trades, should pay attention to how the price interacts with 1.37208. If it breaks above convincingly, we could see a quick move toward 1.3750 and beyond. The previous congestion zone of 1.37498 to 1.3759 could either limit gains or serve as a strong support area, depending on market sentiment. If the momentum slows, falling below both the 100- and 200-bar lines would indicate weakness. At that point, attention would shift back to the 1.3617–1.3633 range, which has shown sensitivity to buyers and sellers. Breaking below that could bring the previous 1.3555 level back into focus. With this context, we’re monitoring for signs of strength or weakness around these technical levels. Price movements in the coming sessions should be assessed carefully, especially during data releases or times of low liquidity. Each level mentioned has historical significance, which often influences short-term trading decisions. It’s essential to time entries around these key points, while managing risks closely, in the upcoming days.

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