USDCAD finds sellers near swing high area near 1.3852. Can that lid continue to hold? | Forexlive

The USDCAD on the weekly chart above, moved up to test a swing area near 1.3852 in September and again earlier today. The high price today reached 1.3854 and backed off.

Where did the “back off” go?

The low price reached down to 1.37589. That low stalled between a swing area at 1.37526 to 1.37657. Buyers leaned. The price has bounced.

The bounce has taken the price now back toward the highs from September and in doing so, is reapproaching the 1.3854 level

Risk focused sellers should show up with stops above the 1.3854 level. A move above would put the price in the extreme area from 2020 which has a lot of room (just see the weekly chart). Traders – on a break of 1.3854 – will want to see the price stay above that level and probe the upside.