The USDCAD has traded in a two-way fashion today but holds a modest upside bias. The move higher has pushed the pair further away from support at the October high of 1.40791. That level was broken to the upside last Thursday, and on Friday the market successfully retested it twice, reinforcing 1.4079 as key short-term support heading into the week.
On the topside, the focus remains on the early-November double top at 1.41398, posted on November 5 and 6. That level defines the topside barrier that buyers must break to re-energize the bullish bias and open the door for a more extended move higher.
With the current price trading near 1.4105, the pair sits squarely between support at 1.4079 and resistance at 1.4140. Traders will be looking for a break of either extreme, as a push above resistance or below support should trigger a momentum run in the direction of the breakout.
This article was written by Greg Michalowski at investinglive.com.