The USDCAD has been trading mostly between 1.25865 on the downside and 1.26976 on the topside over the last 10 or so trading days.
Today, the pair crack below that level but found buyers initially near the swing low from March 4 and the price rebounded. That bounce extended above a lower swing area between 1.25865 and 1.2600. The high price reached 1.26075.
The price has since reversed and move back outside the "red box" range and continued to new lows for the day.
The 2nd break will now have traders eyeing the 1.25865 as resistance. Stay below and the bears are in control. Move back in the red box and above the 1.2600 level and there will be disappointment on the failed break.
Sellers are making a play outside the bulk of trading range over the last two weeks. It's up to them now to push lower and away from the consolidation range.