USDCAD retraces gains on the day and tests swing area support ahead of 38.2 retracement.

The USDCAD has now retraced the earlier gains in trading today.

The price is now down testing a swing area between 1.3604 and 1.3615. A move below that level will have traders looking toward the 38.2% retracement of the move up from the December 2024 low to the high price reached in April. That level comes in at 1.35899. In trading this week that retracement level was tested on two separate occasions.

Today and going forward, that level will be a key barometer for both buyers and sellers. The price of the USDCAD has been trending higher since December low (with ups and downs along the way). However, the correction over the last month or so of trading as seen lower highs and lower lows. The 38.2% retracement is always a target level that needs to be broken -and stay broken – if the sellers are to take more control.

So far that hasn’t been done keeping the buyers in play. That would change with a break below that retracement level.

This article was written by Greg Michalowski at www.forexlive.com.