USDCAD found strong resistance near 1,4150 and reversed south again, retaining its neutral structure in the short-term picture.
Currently, the price is eating a portion of its bold gains it earned in the previous days and the RSI and the stochastics on the four-hour chart are pointing to a negative session as they are decelerating.
The 23.6% Fibonacci retracement level of the down leg from 1.4670 to 1.3855 at 1.4050 has been a key support in previous sessions and could remain in focus, while traders will be also closely looking the bullish cross between the 20- and 40-period simple moving averages (SMAs). Falling lower, the price could re-challenge the 1.3815 support and the 1.3855 barrier, which overlaps with the lower Bollinger band. Clearing that obstacle too, all attention will turn to the 1.3720 level, identified by the low on March 16.
Alternatively, if the bulls jump above the 38.2% Fibonacci level of 1.4165, the spotlight could shift back to the 50.0% Fibo of 1.4260, a break of which could extend the positive action towards the 1.4330 resistance. Above that, the door would open for the 61.8% Fibo of 1.4360.
In brief, USDCAD has been in a sideways mode since March 25 and only a step below 1.3855 could change the outlook back to negative.
