USD/CAD extends upside, breaching into resistance

• USD/CAD is meeting a critical resistance in a phase of accumulation. 
• Bears are monitoring for a retest of old resistance to the downside. 

As per the following chart, the price of USD/CAD is in a phase of accumulation and would be expected to move higher in the coming days on a breakout. 

That being said, there is plenty of scope for a further test of the downside and this will bring in the prior highs as support into focus.

Daily chart

A 50% mean reversion has a confluence of what would be a lower 10-day EMA if the price does indeed move to the downside to test the prior highs that would be expected to act as new support. 

With that being said, a break of the current daily resistance opens risk to a higher structure near 1.2280.

If there is a break to the downside, then the hourly chart offers a vantage point from which to monitor for bearish structure: