USDCAD moves back toward the 38.2% support target

The USDCAD is moving lower reaching a new low for the day at 1.35955. That is taking the pair close to the 38.2% retracement of the move-up from the December 2023 low at 1.35899.

Looking at the 4-hour chart above, last week there were two separate tests of that Retracement level with each finding support buyers. Will the buyers come in again or will the sellers finally take more control and push through?

So far, the dip buyers are stepping up. That is not so surprising given the bounces last week off of the technical level. Risk-focused traders can risk a handful of pips against the level with a stop below should there be a break below. On the topside there is resistance near 1.3630. That is the next target. The high price today stalled near that level.

So ups and downs in the USDCAD so far.

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