During the morning session, the USD/CAD pair is developing last week’s upward trend, renewing the high of April 15 and testing 1.3750. Investors await key macroeconomic statistics from Canada.

During the Asian session, the USD/CAD pair is correcting around 1.3750: the Canadian dollar is showing subdued dynamics amid a lack of key macroeconomic catalysts and the recovery of the US dollar, while underlying fundamentals in Canada’s industrial sector continue to point to the stability of domestic production.

The probability of growth remains.

On the daily chart, the correction is approaching its end as the second wave of the higher degree (2) completes, while the third impulsive wave (3) to the upside is developing. On the four-hour timeframe, the initial impulsive wave of the lower degree i of 1 of (3) is developing, within which wave (iii) of i has been formed, the correction as wave (iv) of i has completed, and wave (v) of i has been formed. If this scenario proves correct, the USD/CAD pair’s upward trend is expected to continue toward the 1.4132–1.4400 zone, with a critical stop loss level at 1.3575.

The USD/CAD pair is rising, reaching the resistance area of 1.3710–1.3753 amid US labor market data.

On the four-hour chart, within the 1.3625–1.3676 range, a series of candlestick patterns, Rising Three Methods, can be identified, indicating strengthening pressure from buyers and signalling the continuation of the upward trend.

This week, the USD/CAD pair is correcting against the medium-term downward trend, trading at 1.3671 (Murrey [4/8]), supported by the middle line of Bollinger bands, amid the aggravation of the US-Iranian conflict. Yesterday, the parties exchanged attacks in the Strait of Hormuz, resulting in damage to the Islamic Republic’s port infrastructure and American vessels, which may reduce the likelihood of a diplomatic settlement soon.