On the daily chart below for USDCAD, we can see that after bouncing again near the 1.33 handle and rallying back to the 1.3553 resistance, the price action became a bit choppy between the 1.34 handle and the 1.3553 resistance.

The market is waiting for further economic data to decide where to go next. The Fed left a door open for another hike in June if the data remains strong, so the market is particularly focused on economic reports at the moment with the NFP and CPI next month confirming or denying the rate hike.

USDCAD Technical Analysis

On the 4 hour chart below, we can see that last week, as expected, USD/CAD bounced from the 1.34 support and the 61.8% Fibonacci retracement level as the US Retail Sales were better than expected and the US Jobless Claims improved again. The bias at the moment is bullish but a deterioration in the data may weaken the USD again in the short term. Today, we have the US PMIs on the agenda and a beat to the expectations should lead to more USD strength while a miss should weaken it.

On the 1 hour chart below, we can see that the price is trading within a mini range. A breakout to the upside should take the USD/CAD to the 1.3553 resistance, while a breakout to the downside should lead to another test of the 1.34 handle. Anyway, it may be better to wait for the data release before joining any move as traders may be caught up in a fakeout.