The USDCAD moved lower over the last two trading days and in the process retested a swing area between 1.39458 and 1.39581. Support buyers leaned against that area (the 100 bar moving average of the 4-hour chart was also in that area), and has pushed the price higher in trading today. That move to the upside is now seen the price extend back above the 1.3978 level.
Recall that level was the old high going back to 2022 which was broken last week. Yesterday the price fell back below that level increasing the bearish bias, but when the aforementioned support area held, and the price moved back above the level today, it resets the level as close support for traders today. Staying above would be more bullish.
On the top side, the 100 hour moving average comes in at 1.40302. That would be the next key target to get to and through on further upside momentum. On Monday, the price fell below that moving average and retested in the early hours of Tuesdays trading before moving lower. Getting back above that 100-hour moving average would put the buyers even more firmly in control.
Conversely, if the price closed back below the 1.3978 level today, we could see another run toward the aforementioned support area between 1.3945 and 1.3958.