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USD/CAD - Will 1.40 be a Stop for this Runaway Train

USD/CAD has been rallying sharply since cleanly breaking above 1.34. It stalled around 1.36 and around 1.3750 but continued to truck through. Now as it approaches 1.40, we can expect another stop, with slightly more confidence of a correction. 

USD/CAD 4H Chart 12/17


(click to enlarge)

Before we jump into a sell here, the 4H chart shows no reason why 1.40 would be resistance and the RSI shows strong bullish momentum. 

USD/CAD Monthly Chart 12/17

(click to enlarge)

1.40 is a psychological level, and does start to get into a support/resistance zone. Instead of trying to stop a running train, we should see if the market does indeed treat 1.40 as a resistance. Then, if the short-term price action, say in the 4H chart, shows a price top, we can consider some bearish correction towards 1.3450-1.35.

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