The USDCAD has experienced significant volatility during the election period. Yesterday, the pair reached a new high of 1.4514, the highest level since 2020, while the previous day saw a new low near 1.42899, the lowest since mid-December. These moves briefly broke out of the “Red Box” range, which has defined trading between 1.42899 and 1.4466 since mid-December. However, both extremes quickly reversed, bringing the price back within this range.
In today’s trading, the price tested the lower end of the range during the late European morning session, hitting a low of 1.4300—a psychologically significant level—before bouncing back, aided by weaker CAD sentiment following lower producer price data.
The rebound has pushed the price toward a key cluster of moving averages, including the 100/200-hour moving averages and the 100-bar moving average on the 4-hour chart, spanning 1.4381 to 1.43916. This area serves as a critical pivot point for traders; sellers may defend this zone with stops placed above it, while a break higher would signal increased control for buyers.
Find out in details, the levels in play in the short video. Be aware. Be prepared.