The USDCAD has seen it down and up price action in trade today. The last move was spurred on by better-than-expected US data. ADP came into stronger-than-expected. US jobless claims was lower which is indicative of a solid jobs market. Yields are higher which is helping the US dollar including the USDCAD.
The move back to the upside has taken a price above the 38.2% retracement of the December trading range. That level comes at 1.3345 and will act as a key barometer for the pair today. Admittedly the price moved above that key target yesterday but failed. However, traders have to respect the rebound back above the level after the earlier move lower today.
In this video, I outline the idea and show the importance of the level in the short-term for traders today.