The dips in the USDCAD continue to hold support in the 1.3784 to 1.3803 area, but overhead resistance near the April high at 1.38448 is now an upside hurdle to get to and through.
If the support is broken, I would expect the buyers to turn to sellers as they give up on the upside momentum.
Until then, the buyers are still more in control. but the high from April at 1.38448 needs to be broken and stay broken. This week the price high moved to a high of 1.3865, but could not keep the momentum going. Both the 1.38448 and 1.3865 now need to broken to add to buyers confidence.
So although support is holding in the medium/long term, it seems more like in the short term, the buyers and sellers are in a battle between 1.3784 and 1.3865 as the bias and risk defining levels for traders.
This article was written by Greg Michalowski at www.forexlive.com. Source