The Canada CPI came out weaker today. Retail sales were not great yesterday. The BoC was more dovish on Wednesday. Add a stronger USD and the USDCAD is higher. PS oil is down too.
Technically, the pair has been bull flagging intraday after the spike higher. The correction after the spike held above the 38.2% which is indicative of a more bullish "market". The pair has not been able to take out the high for the day reached in the first hour after the spike higher, but the sellers are not showing they want to take back control. So buyers hold all the cards.
Looking at the daily chart, the 50% of the move down from the September high is at the 1.3143. The price is currently above that level (more bullish). Moreover, check out the corrective low after the spike higher today (on the 5 minute chart). It was at 1.3142. So that increases that levels importance as a risk defining level for buyers. Stay above and bulls are in charge. Move below, rethink. Right now, bulls are still in control.
Getting and staying above the 1.3200 is the next upside hurdle. Might have to wait for next week though