USDCAD is trading near 1.4048, maintaining bullish momentum after several weeks of consistent gains. The pair recently pushed above 1.3980, turning that area into new support and signaling that buyers are still in control.
On the daily chart, price action shows a clear trend continuation with both the 50-day and 200-day SMAs sloping upward. The market has built a solid base above 1.3850–1.3900, and short-term pullbacks continue to attract buying interest. Resistance now sits near 1.4170, a level that has capped multiple rallies since late 2023.
A breakout above this zone could open the path toward 1.4450 and possibly 1.4720, while failure to break may result in a brief consolidation phase around 1.3980–1.3880.
From a weekly perspective, the structure remains constructive, price is holding well above its long-term ascending trendline that has guided the pair since mid-2021. The bullish crossover between the 50-week and 200-week SMAs adds confluence to the ongoing uptrend.
Fundamentally, a strong U.S. dollar, backed by resilient U.S. data and sticky inflation expectations, continues to pressure the Canadian dollar, especially as oil prices soften and risk sentiment wobbles. Until we see stronger energy recovery or dovish signals from the Fed, the upside bias for USDCAD remains intact.
My Takeaway:
USDCAD remains in a healthy bullish trend. As long as 1.3980 holds, the bias favors upside toward 1.4170 and beyond. Only a decisive drop below 1.3850 would hint at a deeper correction.