On the daily chart below, we can see that the buyers keep leaning on the red long period moving average and the support level at 1.3664 as depicted by the long candlesticks wicks rejecting the zone. The BoC is on pause, while the Fed is still hiking although near the end of the cycle.

The recent banking crisis weighed on the US Dollar as interest rates expectations were repriced lower and Treasury yields saw a record fall. Going forward, looks like the pair will be moved more by the risk sentiment than the interest rates expectations.

USD/CAD Technical Analysis

On the 4 hour chart below, we can see that we have another descending triangle pattern with the base at the 1.3664 support and the 38.2% Fibonacci retracement level. The sellers will need to break below that strong area to gain conviction and target lower lows.

The buyers, on the other hand, will need to break above the trendline to target the high at 1.3861 or higher.

On the 1 hour chart below, we can see that the buyers will also need to break above the resistance zone at 1.3740. This mini range eventually will break and lead to a strong move upward or downward.

For now, the best strategy would be to wait for a breakout or a fundamental catalyst strong enough to lead to the breakout. Maybe, today’s US PMIs can offer that opportunity.