Retracing back toward break area from last week
The USDCAD fell below a swing area in the 1.2802-115 last Thursday. That break saw a run back to the area on Thursday (see lower yellow area) but sellers returned and pushed to new lows since April 20.
Today the pair has moved lower and back higher on the recent dollar strength.
The price currently trades at new session highs and in the process is back up retesting the lower swing area at 1.28025-115. Do we find sellers against resistance, or does the pair brak back into the ups and down range that confined the range from April 23 to May 8th?
It is a low risk trading area for bulls and bears. Sell against and with a move above the 1.28115, look to exit with a small loss.
If you like the upside, you want to see a break above the 1.28115. If broken, the 1.28025 is the risk.