On the below daily chart for USDCAD, we can see that after bouncing back near the 1.33 handle and rising back to the 1.3553 resistance, the price action has become a bit choppy between the 1.34 handle and the 1.3553 resistance.
The market is waiting for more economic data to decide where to go next. The Fed left the door open for another rally in June if data remains strong, so the market is particularly focused on economic reports right now with next month’s NFP and CPI confirm or deny or deny a rate hike. .
On the 4 hours chart below, we can see that last week, as expected, USD/CAD rebounded from the 1.34 support and 61.8% Fibonacci retracement level as US retail sales were better than expected and US jobless claims improved again. The bias at the moment is bullish but deteriorating data could weaken the dollar again in the short term. Today, we have US PMIs on the agenda, and exceeding expectations should lead to more USD strength, while failure should weaken it.
On the hourly chart below, we can see that the price is trading in a small range. A break to the upper side should push USD/CAD to the 1.3553 resistance level, while a break to the lower side should lead to another test of the 1.34 handle. In any case, it might be best to wait for the data to be released before joining any movement, as traders might fall for a fake scam.
