USD\/CAD is trading around 1.3870, testing the upper ascending channel boundary. The 14-day Relative Strength Index at 60.8 indicates bullish conditions, supporting the pair’s positive momentum.<\/p>\n
The pair’s strength is sustained by trading above the nine-day and 50-day Exponential Moving Averages (EMAs). Holding above the 50-day EMA at 1.3845 maintains a topside bias, with a potential target of 1.4014 if it surpasses the ascending channel’s boundary.<\/p>\n
A drop below the nine-day EMA at 1.3788 could slow the advance, shifting the focus towards support levels. The lower ascending channel boundary at 1.3730 is a key support, with a break below potentially leading to a test of 1.3642.<\/p>\n
The CAD outperformed the Australian Dollar, shown in its relative strength against major currencies. It recorded a 0.33% appreciation against the Australian Dollar, while it dropped 0.15% against the US Dollar.<\/p>\n
These percentages outline CAD’s performance against other currencies: USD -0.01%, EUR 0.07%, GBP -0.14%, JPY 0.15%, AUD 0.33%, NZD 0.31%, CHF -0.02%. The data reflects shifting market conditions and CAD\u2019s relative strength.<\/p>\n
Looking back at the analysis from early 2025, the bullish outlook for USD\/CAD proved correct as the pair broke above the 1.4000 level later that year. We are now seeing the pair trade near 1.4150, supported by a clear divergence in economic momentum between the US and Canada. This ongoing strength suggests that options strategies favoring further upside should be considered.<\/p>\n
The policy gap between the central banks is widening, creating a strong tailwind for the US dollar. Last week’s US Non-Farm Payrolls data showed a surprising addition of 215,000 jobs, while Canada\u2019s own jobs report showed a net loss of 10,000 positions. This reinforces expectations that the Bank of Canada may need to consider rate cuts before the Federal Reserve does.<\/p>\n
The Canadian dollar is also facing pressure from softer energy markets, a familiar headwind. WTI crude oil prices are currently hovering near $75 a barrel, down significantly from the highs we saw in the third quarter of 2025. Historically, periods of sustained weakness in oil below $80 have correlated with a weaker CAD.<\/p>\n
Given this backdrop, we believe buying near-term call options on USD\/CAD is a prudent strategy for the coming weeks. A target strike price around 1.4250 could offer a favorable risk-reward profile, capitalizing on the current momentum. Traders should monitor upcoming inflation data from both countries as the next major catalyst.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD\/CAD remains bullish above key EMAs, targeting 1.4014; CAD gains versus AUD, mixed against others.<\/p>\n","protected":false},"author":62,"featured_media":16966,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38581","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\/38581","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=38581"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16966"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}