The USDCAD reached a high of 1.32072 on September 1, and 1.3208 on September 8. Today the high price on the hourly chart above reached 1.32054 a few pips short of the previous highs.
The 3 week ceiling is being respected and as a result, the level increases in importance technically. It will take a move above to tilt the bias more to the upside. However, also note that the July 14 high at 1.32228 looms above and would also need to be broken. Nevertheless, sellers can lean at the recent ceiling with a stop on a break above on hopes of a move above 1.32228 to follow thereafter.. The current price trades at 1.3171.
What would give sellers more comfort. On the hourly chart above, watch the 1.31317 to 1.31488 area (se green numbered circles). Althoguh the price has traded above and below that level from August 30 to Septembr 8, the area does have a number of swing lows/highs in that area. A move below should see more selling momentum with the 200 hour MA at 1.3099 as the next key target followed by another swing area between 1.3072 and 1.30943.
For now however, the pair is trading in the upper extreme area with the ceiling at 1.3208 and a floor down to 1.3137 as the wide range.
