USDCAD takes a breather

The USDCAD has raced higher in trading today and in the process really had limited corrective price action. There was a brief consolidation after the better-than-expected GDP, but it has been racing back to the upside over the last few hours. However, the last 20 minutes have seen a rotation to the downside. The buyers are taking a breath.

What next?

When the market trends, I like to watch the 38.2% – 50% correction zone of the last trend leg. That leg started at 1.3536 and extended up to 1.3645. The 38.2% retracement comes in at 1.36037 while the 50% retracement comes in at 1.35909. That area between 1.35909 to 1.36037 is the correction zone. If the price can hold that area, the buyers remain in firm control.