Since the beginning of the year the currency gained almost 0.2% but last week fell 0.2% and is in a warning phase since late May.
Last week the USDCAD went back and forward without any clear direction and closed in the middle of the weekly range, in addition the currency pair closed within the previous week range, which suggests being clearly neutral, neither side is showing control.
The currency pair is closing below the 10 week moving average but is able to stay above the 50-week moving average that should provide a good dynamic support.
The stochastic is showing a strong bearish momentum but is still above the 50 mid line.
Expecting an upward move to a Fibonacci retracement at 1.3575 on a bounce from another Fibonacci retracement at 1.3312 (scenario 1) although a break above the Fibonacci retracement at 1.3575 could set in motion a rally up to another Fibonacci retracement at 1.3838 (scenario 2).