Last week’s candle looked as though we were seeing the market push higher towards the 1.3500 major resistance level, however, as the price of oil jumped higher and we saw weaker than expected US payroll data with NFP, the USDCAD pared gains for a significant retracement. Despite closing bullish, the market is now trading back below the 1.3370 region which we can see has caused a reversal previously. I’ll be looking for price to return to the 1.3370 this week. A rejection of the level would confirm the formation of a double top and we could look down towards the 1.3000 major support level. Alternatively, a break above the 1.3370 would see the market extend up towards the 1.3500.

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