USD\/CAD has moved out of a multi-month consolidation and risen above the 200-day moving average. The daily MACD remains in positive territory, hinting at further potential gains with targets around the 1.4110\u20131.4165 range.<\/p>\n
Any short-term retracement could find support at the recent pivot low of 1.3930. The pair is inching towards a possible resistance zone, as noted by a group of FX analysts.<\/p>\n
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The recent breakout in USD\/CAD above its 200-day moving average suggests we should be looking at bullish strategies. With upward momentum firmly in place, the path toward the 1.4110 area seems to be clearing. This is a signal to position for further gains in the US dollar against the Canadian dollar.<\/p>\n
This move is supported by fundamental factors, as the September 2025 US inflation data came in slightly hot at 3.8%, keeping the Federal Reserve on alert. Meanwhile, the Bank of Canada is facing a slowing economy, confirmed by the latest jobs report which saw unemployment rise to 6.4%. The recent dip in WTI crude oil prices below $83 a barrel is also weighing on the loonie.<\/p>\n
For those looking to capitalize on this trend, buying call options with November or December 2025 expirations could be a straightforward approach. A bull call spread, perhaps buying a 1.4000 call and selling a 1.4150 call, offers a risk-defined way to target the expected resistance zone. This strategy helps to lower the initial cost while still capturing the anticipated upward move.<\/p>\n
Alternatively, if we believe the downside is limited, selling put credit spreads with the short strike below the 1.3930 support level could generate income. This strategy profits from both a rising price and time decay, as long as the pair remains above our key support. We’ve seen similar patterns of strength in the US dollar during the 2022-2023 period when central bank policies diverged sharply.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD\/CAD breaks consolidation, rises above 200-day average; further gains likely with support at 1.3930.<\/p>\n","protected":false},"author":62,"featured_media":16960,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-31949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t