Risk is the topside trend line now.
The USDCAD moved higher on the back of the dovish BOC statement. In the process, the pair moved above a topside channel trend line at 1.3405. That is close risk for longs. Stay above keeps the bulls full in control.
Looking at the daily chart below, the pair hsa moved to the 61.8% of the move down from the end of December high at 1.3436. A swing high from early December comes in at 1.3443. The high just reached 1.3440 between those two levels. That area may continue to slow the run for now, with stops on a break higher.
So buyers are in control above the channel, but there seems to be some overhead resistance that may put a pause on the rally for now.
The break of the channel trend line keeps the bulls/buyers more in control. The only headwind would be profit takers against the 61.8% (and swing area).
PS looking at the 1 minute chart below, the run higher has the 50% of that move at 1.3406. That is near the trend line on the hourly chart and increases the levels importance for the bias tilt. Stay above is more bullish. Move below is more bearish....
