The USDCAD has moved higher with the stronger dollar but not after first running into the downside and testing trendline support. After that support held, the price has bounced back higher and retraced the full decline for the day. The pair close yesterday near 1.2848. The current price is just below that level at 1.2841, after running to a high price of 1.2869.
Looking at the hourly chart, the high price today fell short of the next resistance target area defined by swing highs going back to December 24, December 28, and more recently last week's highs from Thursday and Friday's trading. That area comes between 1.28739 and 1.28804. Not getting above is a disappointment. Ultimately, if the price is going higher, getting above that area is key from a technical perspective.
Can the buyers regroup and make another run at it?
The price has moved back lower and currently tests another swing area between 1.2834 1.28426. Earlier today, the 1.2834 level acted as a ceiling before moving to the downside. If the buyers are to take more control and keep control, staying above that level would be required. A move below would disappoint the longs even more.