On the daily chart below for
USDCAD, we can see that after bouncing again near the 1.33 handle and rallying
back to the 1.3553 resistance, the price action became a bit
choppy between the 1.34 handle and the 1.3553 resistance.
The market is waiting for further
economic data to decide where to go next. The Fed left a door open for another
hike in June if the data remains strong, so the market is particularly focused
on economic reports at the moment with the NFP and CPI next month confirming or
denying the rate hike.
On the 4 hour chart below, we can
see that last week, as expected, USD/CAD bounced from the 1.34 support and the
61.8% Fibonacci
retracement level as the US Retail Sales were better than
expected and the US Jobless Claims improved again. The bias at the moment is
bullish but a deterioration in the data may weaken the USD again in the short
term. Today, we have the US PMIs on the agenda and a beat to the
expectations should lead to more USD strength while a miss should weaken it.
On the 1
hour chart below, we can see that the price is trading within a mini range. A
breakout to the upside should take the USD/CAD to the 1.3553 resistance, while
a breakout to the downside should lead to another test of the 1.34 handle.
Anyway, it may be better to wait for the data release before joining any move
as traders may be caught up in a fakeout.