While USDCAD may be broadly biased to the upside in the long term, it faces bear threats following its rejection candle print on Friday.
To prevent this from eventually happening the pair will have to recapture its Feb 21 2014 high at 1.1192 level. This if seen will trigger further bullishness towards the 1.1223 level where a violation will aim at the 1.1300 level and subsequently, the 1.1350 level.
On the other hand, support comes in at the 1.1050 level where a breach will turn attention to the 1.1000 level.
Further down, support comes in at the 1.0909 level followed by the 1.0842 level, its previous week low and next the 1.0736 level, its Dec 20 2013 high. All in all, USDCAD faces further bullish risk but with caution.
Guest post by FX Tech Strategy
For more on the loonie, see the Canadian $ forecast.