USD/CAD on the Move – Bulls Take Control as Loonie Struggles
The U.S. dollar is showing strength against the Canadian dollar. On Tuesday, USD/CAD bounced back from the 1.3675–1.3680 range and moved up to around 1.3730–1.3735 during the Asian trading session. This movement happened because oil prices dropped, which hurt the Canadian dollar (also called the Loonie). However, the slightly weaker U.S. dollar kept the gains limited.
From a technical point of view, the pair found support near the 100-period Simple Moving Average (SMA) on the 4-hour chart. It also broke above a short-term downward trend line, which is a sign of buyer strength. But some technical indicators still show mixed signals, so traders should stay cautious.
If the price continues to rise, it could face resistance near the 200-period SMA at around 1.3775. If it breaks that level, the next possible target is the monthly high at 1.3800. A further breakout could take it to 1.3835–1.3840, then 1.3860, and even 1.3900.
On the flip side, if the price drops, it may find support at 1.3700. If it goes below that, the next level is 1.3680–1.3675. A deeper fall could take it down to 1.3615, and below that, the bearish trend may become stronger.
Impact :
USD/CAD could rise toward 1.3800 or even 1.3900 if bullish momentum continues. However, if it falls below 1.3680, it might slide toward 1.3615.