USD/CAD is currently trading above 1.3000. However, the impending rally in oil prices, as well as the closing of long positions ahead of the release of the US inflation report for April, are likely to lead to another sharp decline in the pair, most probably below 1.3000. Increased demand for stocks in Europe and the US will keep the pair afloat.
Technical picture:
The quote is above the middle line of the Bollinger indicator, above the SMA 5 and SMA 14. Meanwhile both the relative strength index (RSI) and the stochastic indicator are in the overbought zone.
Possible dynamics:
A dip below 1.3000 will provoke a further fall to 1.2915.
