The USDCAD moved sharply higher on the back of the weekend tariff news. That news is fluid, so traders need to be cautious. A solution may be found, sending the USDCAD lower, or there could be an escalation of the trade/drug war.

Technically, the price of the USDCAD moved above the 2020 high at 1.4660 on its way to the highest high since 2003 (22 year high) at 1.4792. The price then started a correction lower.

Putting a Fibonacci retracemetn of the move up from the low on Friday to the high today, the 38.2 to 50% comes in at 1.45808 to 1.4630. The corrective low stalled the fall just ahead of the 50% at 1.45808. That keeps the buyers in play. Putting it another way, if the price goes below the 50%, that is not giving the buyers comfort that the fast trend move is still working.

For now, the buyers can have confidence but watch 1.4630 where the 38.2% is located. Watch the 50% at 1.4580. If those levels are rebroken,the run higher may have been too much.

WARNING: A news headline can throw the pair higher or lower. So if that risk is too great, trade something else or wait for the news dust to settle down more.