The USDCAD is trading higher and setting new session highs, bringing the pair back into a key swing area between 1.4010 and 1.40268.
Within that zone sits the 38.2% retracement of the move down from the early February high, coming in at 1.40212. Last week, the price briefly pushed above this area on two separate four-hour bars but failed to sustain momentum on either attempt.
The question now is whether the third time will be the charm. A clean break above 1.40268 could open the door for renewed upside momentum and a potential acceleration higher.
On the flip side, if sellers once again defend the area, the downside levels to watch include 1.3986 (the high from two weeks ago) and 1.39702 (last week’s pre-breakout high).
A move below those levels would likely trigger additional selling pressure, with the 200-day moving average at 1.3950 serving as the next key support target.
