The USDCAD is back in familiar area after the run to new high going back to 2003 retraces

The upside breakout continued yesterday, with USDCAD surging past the 2020 high of 1.4660 and reaching levels not seen since 2003. The rally peaked at 1.47924 before reversing lower. After fluctuating around 1.4660, sellers gained control as Mexico secured a 30-day tariff reprieve. Canada followed suit with similar border control measures, prompting President Trump to grant the same extension—sending USDCAD lower.

Today, European session volatility saw both gains and losses, but resistance held near the 100-hour moving average and the key 1.4500 level. Sellers regained momentum, driving the pair below the 200-hour MA at 1.44379. This move also brings the “Red Box” range—established since December 17 between 1.4290 and 1.4466—back into focus, with 1.4466 now acting as resistance.

In the video, I break down the volatility, key technical levels, and what to watch next. While market swings can reemerge at any time, the 30-day reprieve may lead to consolidation within the familiar “Red Box.” Time will tell.

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