USDCAD moves toward the highs from last week…
The USDCAD is running toward last week’s highs and other swing lows from March 27 and 28 (see red numbered circles and yellow area). That area comes in at 1.3395 to 1.3402. The natural resistance at the 1.3400 is also putting a stall at the area. The high so far has reached 1.3395. Profit takers and low risk traders are taking advantage of the risk defining level.
Earlier in the day the pair based at the converged 100 and 200 hour MAs (at 1.3339 area currently). Holding that level gave the buyers the confidence to move higher (bullish). The better data today in the US, helped to push the pair through a trend line (more bullish) and extend to the current highs.
Now the bulls/earlier buyers may be leaning against the resistance area to take some profit. New sellers may also be leaning as well (with stops on a break above the yellow area) as risk is defined and limited.