USDCAD is holding firm near 1.3980, consolidating after last week’s pullback. The pair remains supported by its long-term ascending trendline, a structure that’s guided price action since 2021.
While the 50-day SMA recently crossed above the 200-day, suggesting medium-term bullish momentum, the rally is showing early signs of fatigue.
On the daily chart, immediate resistance sits around 1.4170, the same zone that triggered profit-taking earlier this quarter. Beyond that, the next major cap lies at 1.4450–1.4720, where previous rallies reversed.
Support rests at 1.3890, followed by 1.3810 both key levels to watch for trend validation.
Zooming out to the weekly timeframe, the broader uptrend remains intact as long as the pair holds above its purple trendline. However, the candles show hesitation near the mid-1.40s, reflecting the tug-of-war between oil-driven CAD strength and ongoing USD resilience.
My Takeaway:
USDCAD remains technically bullish but losing momentum. Bulls need a clean break above 1.4170 to confirm continuation, otherwise, expect some sideways movement or mild correction before another push higher.