USD/CAD Stays Weak Below 100-Day Average, Bearish Trend Continues
The USD/CAD pair is struggling to move higher and remains below its 100-day moving average. It recently traded near 1.3700. Although there was a small upward move this week, it still looks weak overall.
Tensions in the Middle East helped the U.S. dollar stay slightly strong, giving some support to USD/CAD. On the other hand, positive talks around a U.S.–Canada trade deal supported the Canadian dollar, keeping the pair under pressure.
From a technical view, the trend is still bearish. The pair couldn’t break above the 1.3715 resistance level and is staying below key moving averages. The Relative Strength Index (RSI) has moved above 40, which shows the selling pressure is slowing down a bit, but the overall direction is still down.
If the price breaks below the support zone of 1.3540–1.3500, it could fall further toward the February low near 1.3420. For the pair to recover, it needs to break above the 20-day and 100-day moving averages, with stronger resistance levels around 1.3820 to 1.3930.
Impact: USD/CAD could possibly fall toward 1.3500 if weakness continues. However, any rise in risk or U.S. dollar strength might push the pair back toward 1.3800 levels.