Tests resistance on daily and hourly
The USDCAD snapped higher off the low from March 13th. It was not the March low, but it was a low before the pair ran higher (see red circles on the hourly chart below)
The correction on the hourly has moved up to test the 38.2-50% of the last trend leg lower (see yellow area in the chart above) between 1.2917 to 1.2941. The swing lows from March 14th area also in the area at 1.2920. Sellers should enter here if the selling is to stall.
That area is also important on the daily chart.
Looking at it, the channel trend line ware broken in trading today, as was swing levels in the 1.29079-26. The high just reached 1.2926 and the price has backed off.
If the sellers are to keep control, sellers should show up here as well (with stops above).
So, key resistance is being tested. If the sellers show up, look for a rotation back below the 1.2900 level to give shorts some breathing room. If the 1.2926 starts to be breached, I would expect more buying with a break of 1.2941 confirming a more bullish bias (or at least more muddy technical bias).
