Back to the technicals though and following the trendline breakout at the end of July and rally to just above the 1.3900 mark, USD/CAD has been stuck in a range. We do have the formation of a head and shoulder pattern which has now formed but price is bouncing higher at the time of writing. Now a break of the neckline at 1.3723 and candle close below could trigger a potential 200-pip selloff and retest of the 1.3500 psychological level. A bounce from here though will face resistance at the 1.3900 handle before the psychological 1.4000 handle comes into focus. The 100-day MA is serving as support at present with the daily candle closing back above after a candle closed below the 100-day MA yesterday.