The USDCAD is pushing to the upside (with the broader USD advances today) and in the process is stretching toward the high from last week at 1.3837. A move above that level would have traders targeting a swing area off the daily chart point back to 2022 between 1.3859 and 1.3898. Move above that level and traders start talking about the 2024 high at 1.39458 and the 2022 high at 1.3977.

What was a key last week, was that at session lows last week, the price did hold the 61.8% retracement of the 2024 trading range at 1.37445. Holding that level buyers the go-ahead to push higher.

This week, the Bank of Canada will announce its rate decision on Wednesday. The odds-on-favorite is up for a 50 basis point cut. That bias has weakened the CAD over the last few weeks of trading.

Also helping the USD today is that rates are moving higher with the two year up 5.6 basis points at 4.010%, the 10 year is up 8.1 basis points at 4.1559%

This article was written by Greg Michalowski at www.forexlive.com.