...but 50% of the move down from the March high stalls the rally
The USDCAD has a little bull and a little less bull.
The less bull is that the pair ran up to a high to 1.4264 today. That was just above the 50% midpoint retracement of the move down from the March 2020 high (see daily chart above). The inability to extend above the midpoint level takes some of the recent "bull". It will take a move above that level to solicit more buying.
Drilling to the hourly chart, the more bullish technical development is that the recent correction off the high today, stalled ahead of its 38.2% retracement of the move up from last Friday's low. That retracement is the minimum target that needs to be broken if sellers are to take back control from a bullish move higher. They could not do that, and the price rotated higher.
We currently trade in between the 38.2% retracement below at 1.4161 and the resistance above at 1.4261-64 area (the current price is 1.4205). I would give the not a little more to the upside on the back of the recent moves higher, but there is work to be done.
A little closer risk level for longs would come in at 1.41799 to 1.41814. Stay above is more bullish.
