The USDCAD is modestly higher on the day after sellers failed to extend the downside following an early break lower. The pair opened on the defensive and slipped below its rising 100-hour moving average (currently at 1.40874), but bearish momentum quickly stalled ahead of the 200-hour moving average at 1.4064. The decline reached a low of 1.4071—just above that key support—before buyers stepped back in and drove the pair higher.That rebound has now lifted the USDCAD to 1.4112, putting the pair within just 4 pips of last week's high at 1.41166. That level is technically significant because it also aligns with the July 10 swing low, meaning what had previously acted as support has now turned into resistance. If buyers are to strengthen the bullish case, they will need to break and hold above that level.A move above 1.41166 would shift the focus toward the next resistance zone between 1.4130 and 1.41488. As the chart shows, that area served as an important floor throughout much of June and early July before giving way in the sharp July 14 downside break. Former support often becomes resistance, making this the next key hurdle for buyers.Supporting the intraday recovery has been a modest rebound in U.S. Treasury yields during the North American session. After falling more sharply earlier in the day, the 2-year Treasury yield is now down just 0.8 basis points at 4.322%, while the 10-year yield has trimmed its losses to 2.8 basis points, trading at 4.6507%. The stabilization in yields has helped the U.S. dollar recover broadly, providing an additional tailwind for the USDCAD. Lower oil prices and trade tension with the US and Canada, could also be dynamics that weaken the CAD vs the USD (higher USDCAD). This article was written by Greg Michalowski at investinglive.com.