USDCAD stretches higher and is testing a swing high target from 2020

The USDCAD is pushing higher, testing levels not seen since April 2020 at 1.4264. A break above this key resistance would open the door to the next target near the March 8, 2020 high at 1.4348.

Since late September, the USDCAD has been trending steadily upward, starting from around 1.3425—a significant move that reinforces the adage: “the trend is your friend.” In strong trends like this, it’s critical to identify levels that need to be broken on the downside to signal that sellers are starting to regain control. Without those breaks, sellers are simply not winning, and the buyers remain firmly in control of the market.

In this video, I analyze the key technical levels that sellers must breach—and hold—to gain even the slightest confidence. If these levels fail to break, the bullish trend remains intact, and buyers will continue to dominate the price action.

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