Since the beginning of the year the currency lost almost 0.5% but last week rose more than 2.0% and is in a recovery phase since late February.
Last week the USDCAD rose with a wide range and closed near the high of the week, in addition the currency pair managed to close above the previous week high, suggesting a strong bullish momentum.
The currency pair was able to close above the 10 and 50-week moving averages that now should provide a dynamic support.
The stochastic is showing a strong bullish momentum and crossed above the oversold zone.
Expecting an upward move to a weekly resistance at 1.4140 on a break above the key level at 1.3598 (scenario 1) although a bounce from the key level at 1.3598 could drag down the currency pair to the lower range of the weekly resistance at 1.3154 (scenario 2).