We have a great zone now where price could possibly go and reject USD/CAD forecast as the Canadian dollar hovers near a five-month low hit on Friday last week. Economic indicators from the US and Canada have supported a rally in the USD/CAD pair as they show a growing divergence in monetary policy outlooks.Canada’s economy is deteriorating due to the high borrowing costs. At the same time, inflation has eased significantly. Higher interest rates have had a bigger negative impact in Canada than in the US. Therefore, there is little stopping the Bank of Canada from starting rate cuts in June. Markets are placing a near 50% chance that the BoC will cut in June. Consequently, interest rates might decline in Canada before they do in the US. This has put the Canadian dollar in a weak position compared to the US dollar.