During the Asian session, the USD/CAD pair is testing the 1.3965 mark for a breakout, staying close to the highs of May 16, which were renewed yesterday.

Growth is possible.

On the daily chart, the downward correctional second wave of the highest level (2) forms, within which the wave А of (2) ended, and the correctional wave B of (2) develops. Now, the wave c of B and the wave of the lowest level (i) of c are forming. If the assumption is correct, the USD/CAD pair will grow to the area of 1.4163–1.4300. In this scenario, the critical stop loss level is 1.3723.

This week, the USD/CAD pair consolidated above the 1.3870 resistance level amid continued declines in WTI Crude Oil prices. After reaching a high of 66.39, the quotes fell 6.6% to 62.02 on expectations of an oversupply as production volumes recover.

The USD/CAD pair is correcting at 1.3797, influenced by the positive dynamics of the US currency and poor Canadian macroeconomic data.