In general, the long-term upward dynamics of USD/CAD remains, and a breakout of the resistance levels 1.3555 (50 EMA on the daily chart), 1.3572 (200 EMA on the 4-hour chart) will be a signal for the resumption of long positions on the pair. In this case, USD/CAD will move towards the upper border of the upward channel on the daily chart and towards 1.3977 (October high and June 2020 high).
In the alternative scenario, USD/CAD will still continue to decline towards the key support levels 1.3450 (144 EMA on the daily chart and the 23.6% Fibonacci correction level in the last strong wave of growth from the level of 0.9700 to the level of 1.4600), 1.3380 (200 EMA on the daily chart). Above these levels, USD/CAD trades in the medium and long-term markets. Thus, despite the current downward correction, long positions remain preferable.
Of the main news of this week regarding the USD/CAD pair, it is necessary to pay attention to tomorrow's publications at 12:30, 14:00, 18:00 (GMT) of the most important macro data, the decision of the Bank of Canada on rates and minutes from the March meeting of the Fed.
Support levels: 1.3450, 1.3400, 1.3380, 1.3320, 1.3200, 1.3090, 1.3040
Resistance levels: 1.3555, 1.3572, 1.3600, 1.3700, 1.3810, 1.3860, 1.3900, 1.3970, 1.4000
