USDCAD - 240 - Rollercoaster

USD/CAD has finally found a strong level of resistance at the psychological 1.30 mark. Twice it managed to hit that level now, which has proven to be too much for the pair to overcome. It is quite difficult now to predict the direction for the short-term, because on one side, the pair is looking strong and it is still within the upwards moving channel. But on the other side, it seems that it is forming a double top here on the 4h chart, which means that the price could get pushed lower, towards the lower bound of the channel.

If USD/CAD makes a strong move towards the 1.28650 area, it will meet the 50 EMA as well. This could act as a strong support level for the pair, which if broken, could push the price lower towards the bottom side of the channel to the level of around 1.27550.

On the upside, a break above the 1.29150 could push the pair higher again, probably towards the 1.29600 level and then maybe back up towards the 1.30 area.

Could be a potential SELL, just for a bit.