Vendors Leaned Against Resistance Zone
The USDCAD increased with the global purchase of the dollar. The price rose to a 38.2% retracement at 1.39704. It was just above its 100 hour moving average currently at 1.39625 and in a swing area (see numbered red circles) in the area of 1.3965 to 1.3972. The high price stalled at 1.3969.
The sellers bent over because the risk can be defined and limited in relation to the resistance group. As for the price progression over this area, there would likely be stocks with a race to the moving average of 50% and 200 hours near the 1.4000 level.
For now, however, the corrective movement has stalled where it needs to stall, and therefore the sellers are more in control. The 1.3923 and 1.38994 (call it 1.3900) are bearish targets as long as the price remains in the lower part of the aforementioned resistance zone.