USD/CAD has now regained its previous gains in today's trading.

The price is now falling and testing the swing zone between 1.3604 and 1.3615. A move below this level would have traders looking towards the 38.2% retracement of the move up from the December 2024 low to the high price reached in April. This level comes at 1.35899. In trading this week, this retracement level was tested on two separate occasions.

Today and in the future, this level will serve as a key gauge for both buyers and sellers. The USD/CAD rate has been trending higher since the December low (with ups and downs along the way). However, the correction over the last month or so of trading has seen lower highs and lower lows. The 38.2% retracement is always a target level that must be broken – and stay broken – if sellers want to take further control.

So far this has not been done to keep buyers in the game. That would change with a break below this retracement level.