USD/CAD snaps 5-day losing streak ahead of US PPI

Over the past 5 days, USD/CAD has retraced -1.7%. And each day saw a loss of bearish momentum. A small bullish engulfing candle formed on Monday to snap the 5-day losing streak, and the fact it formed around the 50-day EMA and 61.8% Fibonacci level make it the more appealing for a bullish swing trade.

Bulls could target just below the 1.38 handle, with a stop just beneath last week's low. Or a stop could be placed below 1.37 for a more conservative reward to risk.