The USDCAD is reversing the declines seen in trading yesterday and in the process is up testing the 38.2% retracement of the range since the July 14 high. It is also now testing a topside trend line on the hourly chart connecting highs from August 5, August 15 and August 16. Those levels come near 1.29166. Move above is more bullish.
So far sellers are leaning against the resistance target. A break above would need to get to and through the highs for this week up to 1.2933 to increase the bullish bias.
Helping the momentum today was the holding of the 100 hour moving average on the dip in the late Asian/early European session (see blue line in the chart above). Recall from Monday, the price moved above the 100 day moving average and 100 hour moving average before racing to the upside. The corrective move lower yesterday disappointed those buyers, but the holding of the 100 hour moving average, gave new life to the currency pair today.
So ups and downs are in progress. The USDCAD is testing a topside resistance with buyers and sellers now battling it out ahead of the US stock open. Key level for both buyers and sellers.