On the daily chart below, we can see that USDCAD has been pretty much rangebound for half a year, probably because the two most hawkish central banks, the Fed and the BoC, were seen coming to the end of their tightening cycle. We have two major levels here, the support at 1.3300 and the resistance at 1.3665. The USD has recently started to appreciate across the board due to stronger than expected US economic data Economic Data Economic data typically comes in the form of news releases that are disseminated daily. This information is extremely valuable to retail and institutional forex traders, given the influence such data has on currency rates.Most of the major economic events that are released are reported by sovereign governments throughout the globe. Moreover, there are several economic data points that are released by private organizations that can also move the market.By and large, when new information becomes a Economic data typically comes in the form of news releases that are disseminated daily. This information is extremely valuable to retail and institutional forex traders, given the influence such data has on currency rates.Most of the major economic events that are released are reported by sovereign governments throughout the globe. Moreover, there are several economic data points that are released by private organizations that can also move the market.By and large, when new information becomes a Read this Term that made the market to reprice interest rates expectations on the hawkish side.

This development has lifted the USDCAD and took it back to 1.3665 level from the 1.3300 support. The buyers will now eye a break above the 13665 resistance to start targeting the previous high at 1.3862, while the sellers will want to defend this level and target another fall to the 1.3300 handle.

USDCAD Technical Analysis

On the 4 hour chart below, we can see that within the 1.3300 and 1.3665 range we have another two significant levels. The price is now near one of them at 1.3553 and it’s expected to be a strong support. We can find here the confluence from the trendline and the 61.8% Fibonacci retracement level.

The buyers will be leaning on this support zone with a defined risk below it in case the price spikes down to it. The target will be the 1.3665 high first and, upon a breakout, the 1.3862 resistance. The sellers, on the other hand, will be waiting for a break below the 1.3553 zone to pile in and target the 1.34 handle.

On the 1 hour chart below, we can see that USDCAD is already showing signs of bottoming. So, in case the price does not spike down to the support zone, the buyers may start to pile in once the price breaks above the recent swing high at 1.3612. The target would be the breakout of the 1.3665 high.

The sellers don’t have much to lean on here as the only strategies would be to lean on the 1.3665 resistance with a defined risk above it or wait for the downside breakout of the 1.3553 support zone. This week the main risk event is the US NFP report on Friday where strong readings should keep the USD bid, while misses should cause USD weakness.