The pair currently tests support at approximately 1.3980, the ascending channel’s lower boundary. A decisive drop below this boundary could pressure USD\/CAD to test the 50-day EMA at 1.3907. Further declines may affect medium-term momentum, with possible dips towards the three-month low of 1.3721.<\/p>\n
The Canadian Dollar’s strength varies against major currencies today, particularly strong next to the Japanese Yen. A heat map illustrates these currency fluctuations, with the Canadian Dollar as the base currency against others.<\/p>\n
As of today, October 23, 2025, we see the USD\/CAD pair at a critical point, testing the lower boundary of its ascending channel around 1.3980. While the broader trend remains bullish, short-term momentum is showing signs of weakness. This suggests that the next few trading sessions will be decisive for the direction into November.<\/p>\n
The fundamental picture supports a stronger US dollar, which makes shorting the pair a risky move. The recent US Consumer Price Index data for September 2025 came in slightly above expectations at 3.8%, keeping pressure on the Federal Reserve to maintain its hawkish stance. This contrasts with the Bank of Canada, which has signaled it is firmly on hold due to a cooling domestic economy.<\/p>\n
Furthermore, we’ve seen West Texas Intermediate crude oil prices slip to around $82 a barrel this month on global growth fears, weighing on the Canadian dollar. This divergence between a firm US economic outlook and a softer Canadian one reinforces the potential for the pair to move higher. A similar pattern was observed back in the fall of 2022 when aggressive Fed policy drove significant USD\/CAD gains.<\/p>\n
For derivative traders, this presents a clear opportunity if the 1.3980 support level holds. We would consider buying call options with a strike price at or above the psychological 1.4000 level, targeting a retest of the recent high of 1.4079. However, a convincing break below this channel would signal a trend change, making put options with a strike around 1.3950 a sensible hedge against a deeper move down toward the 1.3900 area.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD\/CAD tests support at 1.3980 as bullish momentum weakens; key resistance remains near 1.4000 level.<\/p>\n","protected":false},"author":62,"featured_media":16959,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-33005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/33005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=33005"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/33005\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16959"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=33005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=33005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=33005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}