USDCAD bounces off the 38.2% and rebounds to new session highs. What next?

The USDCAD fell in response to the weaker than expected US data, and on the move to the downside, tested the key 38.2% retracement of the move up from the December 2024 low. That level came in at 1.35899. The low price came in at 1.35895.

The price has rebounded higher and pushed the price into a swing area between 1.3654 and 1.3668. So far sellers have leaned against that area. Also in play is the 200-bar moving average on the 4-hour chart at 1.3673.

The inability to move below 38.2% retracement kept the buyers in play. Can they continue that momentum? So far, the sellers have leaned against topside resistance keeping a lid where it is supposed to in order to keep the sellers bruised but content.

This article was written by Greg Michalowski at www.forexlive.com. Source