Near-term resistance is at 1.3556, the 38.2% , with a break above that on a daily closing basis clears the way for a test of the 50% level at 1.3725. Alternatively, a reversal back below the 23.6% Fib at 1.3347 – now recast as support – opens the door for a challenge of the 14.6% level at 1.3218.
Positioning now seems attractive for a USDCAD trade and longs can be taken, initially targeting 1.3556. A stop-loss will be activated on a daily close below 1.3332. Look to book profit on half of the position and trail the stop-loss to the breakeven level once the first objective is hit.