USDCAD fails at 100-day MA despite technical breakout attempt

USDCAD surged to test key resistance levels during Monday's session, breaking above the 200-hour moving average at 1.37817 and briefly piercing the 100-day moving average at 1.37876. Despite these technically significant breaks that should have triggered further upside momentum, the pair failed to sustain gains and reversed sharply lower. The rejection at these critical resistance levels suggests strong selling pressure emerged near the 1.3790 area, potentially from profit-taking or fresh short positions. This false breakout pattern indicates underlying weakness in the US dollar against the Canadian dollar, with bears defending the 100-day MA successfully. Technical traders will now watch for a potential retest of support at the 200-hour MA, while a break below could accelerate losses toward 1.3750. The failed breakout serves as a cautionary signal for bulls, suggesting additional consolidation or downside pressure may develop before any sustainable move higher.