The USDCAD has moved lower after failing to sustain a break higher earlier today. Technically, the pair briefly pushed above the April 19, 2020 high at 1.4264, reaching a session high of 1.4270, but momentum quickly faded. The price rotated back below last week’s high at 1.4244 (Friday) and extended to a corrective low of 1.4222 before bouncing back higher.
The pair is now retesting Friday’s high at 1.4244—a critical level where sellers need to step in to cap the upside and attempt to regain control. The risk for sellers remains limited at this level, but the question is whether they can generate enough momentum to push the pair lower.
If sellers succeed, the next key downside target comes in at the 1.4194 to 1.4200 zone. A break below this area would further strengthen seller confidence and signal a shift in control.
Adam in his post, paints the political turmoil potentially leading to a RISE in the CAD (lower USDCAD). See his post here…
Adam wrote:
I tend to think it’s all upside risks for the Canadian dollar here (downside for USD/CAD) because if an election is called, the outcome is a foregone conclusion and the market would like to see some change.
Technically, the best case would be to hold here near the 1.4244 level. A more conservative technical ceiling woulld be to stay below 1.4264.