The USDCAD has reached a new session low as it trends to the downside today. That low is now reach 1.30359. The move to the lows as taken the price into a swing area defined by lows from the end of August to early September. That swing area comes between 1.3035 and 1.30464. A move below would open the door toward the August 31 and September 1 lows at 1.3019 and 1.29936.
As the price looks toward the recent lows, there could be some traders putting a toe in the water as risk can be defined and limited. However, on a break, look for buyers to turn to sellers.
Drilling to the 5 minutes chart, the pair initially move higher before reversing back below the swing high price from the last hour so trading yesterday at 1.31462. After using that level as a ceiling (see red numbered circles), sellers push the price lower in the early North American session.
The 38.2% retracement of the last trend moved lower comes in at 1.30748. That is now close resistance.