The USD/CAD pair is looking a little overbought here at the moment. We can see the price was inches away from testing the resistance around C$1.3846 but failed. This led to a sell-off and the first red day since the 1^st of October. Perhaps we may see some profit-taking in the USD trades with more data from the US awaited by the markets. Currently, CAD is trading at around C$1.3784 against USD with yesterday’s intraday low of C$1.3769 as the support here. A break below it could see traders look towards support in and around C$1.3700-C$1.3720, as this is where some of the previous support/resistance points have been earlier in the year (between April and June). A break below this price level may even see the support (previous resistance) around C$1.36.47 come into focus, but this would have to be re-analysed if a deeper decline occurred. The technical indicators are certainly suggesting overbought conditions, meaning a pullback of some sort is now likely. If we look at the history of the chart on the daily timeframe, we can see every time the MACD and RSI were at this point a sell-off occurred. However, it’s not guaranteed that a sell-off of a similar size will happen. Towards the upside, only a clear break and close above the level of C$1.3846 could suggest that more upside is likely.