USDCAD is starting to weaken below strong resistance zone.

May 13

USDCAD is showing clear signs of weakness on the H4 timeframe after repeatedly failing around the 1.3710 resistance level. The price has been consistently rejected at the descending trendline above, indicating that buyers lack the strength to confirm a breakout.

Notably, while the USD is still supported by higher-than-expected US CPI data, the CAD is holding its price relatively well due to persistently high oil prices driven by geopolitical tensions. This is putting significant pressure on USDCAD's upward momentum.

Technically, the current structure suggests a high probability of further correction towards the 1.3650 support level and even lower to 1.3620 if selling pressure persists.

In the short term, I still favor a bearish scenario as long as USDCAD remains below the 1.3710 resistance level.

May 14

Trade active