Ella 
The USD/CAD pair faced some selling pressure on Friday and reversed some of the previous day’s gains that saw the pair rise to around 1.3700 yesterday, or its highest level since late March. However, during the first half of the European session, USD/CAD managed to recover a few points from the session lows, trading around 1.3665-1.3670, down less than 0.15% on the day.
A pullback in U.S. Treasury yields triggered a slight pullback in the U.S. dollar (USD) from six-month highs, a key factor putting some downward pressure on the USD/CAD pair. Still, expectations that the Federal Reserve will keep interest rates higher for longer should be a tailwind for U.S. bond yields and the dollar. In addition to this, weaker crude oil prices have also weakened the commodity-linked Canadian dollar and limited the downside for USD/CAD. Traders also appeared reluctant to make aggressive bets, preferring to wait for the Canadian jobs report due later in the North American morning session.
From a technical perspective, the intraday decline stalled near the breakout of horizontal resistance at 1.3650, which has now turned into support. Any further losses are more likely to attract fresh buyers and remain capped around the 1.3600 round-figure mark. The latter should be a key pivot point that, if broken decisively, would pave the way for a meaningful corrective decline. USD/CAD is likely to accelerate its decline towards the next relevant support near 1.3525 and, subsequently, towards the psychological 1.3500 mark. Some follow-through selling would expose the all-important 200-day simple moving average (SMA), currently located around 1.3460.
