USDCAD Forming Bearish Pressure

USD/CAD opened the week at 1.3698 and quickly dropped to a low of 1.3627, testing support at 1.3630. This pair is trying to break ranging zone between 1.3630-1.3750. Successful breakout of this zone can bring this pair towards 1.3540 level. 

Technical lines, from top to bottom

We begin with resistance at 1.4020. This line has held since February 2016.

The round number of 1.3900 is next.

1.3760 is an immediate resistance line.

1.3650 is an immediate support line.

1.3548 is next.

1.3456 was a high point in September 2015.

1.3349 has held in support since mid-April.

1.3209 is the final support level for now.

USDCAD Chart

US numbers have softened, as underscored by March’s disappointing CPI and retail sales reports. Still, the Fed is expected to raise rates two more times in 2017, although there is some doubt about a June hike.