The USDCAD pair is witnessing volatile intraday trading after encountering firm resistance at 1.3940, a level that had previously been identified as our final price target. This pullback comes as the pair attempts to build renewed positive momentum that could support breaching this resistance.

The pair managed to ease its overbought conditions on the relative strength indicators, which entered deeply oversold territory relative to price action. Meanwhile, the main short-term uptrend remains dominant, increasing the likelihood of a continuation of gains in the near term.