USDCAD extends up to the 38.2% of the move down from the May high

The USDCAD has pushed higher despite counterpoint dovish comments on interest rates from Fed Governor Waller.

The pair moved higher and reached a session high of 1.3723. In the process, the pair tested the 38.2% retracement of the decline from the May high, which comes in at 1.37221. However, momentum stalled at that key technical level. A sustained break above the 38.2% retracement would strengthen the bullish bias and open the door for a test of this week’s high at 1.37457 (set yesterday).

Adding to the bullish case was the solid support seen earlier in the day. The pair found buying interest during the Asian and early European sessions near a swing area between 1.36858 and 1.36923. That support helped build confidence among buyers and led to the steady rise over the last several hours.

The question now is whether buyers can maintain the momentum and push through resistance—or if sellers will lean against the retracement level and force a return back toward the support zone below. That technical battle is now playing out near the 1.3722 area.