USD\/CAD traded sideways on Wednesday in the North American session, near 1.3658. The move followed Monday\u2019s action, when the Canadian Dollar rose 0.34% against the US Dollar and price was capped by that session\u2019s range.<\/p>\n
On Monday, the pair hit a daily high of 1.3709 and closed near 1.3644. This extended a six-day run of falling sessions, but Tuesday ended higher by 0.15% and formed a bullish piercing pattern.<\/p>\n
The Relative Strength Index shows momentum still leaning lower. If price breaks Tuesday\u2019s swing low at 1.3631, it could test 1.3600, with the March 9 daily low at 1.3525 next.<\/p>\n
To move higher, price needs to clear 1.3700 and then 1.3709. Resistance levels include the 50-day Simple Moving Average at 1.3727 and the 100-day Simple Moving Average at 1.3742, with 1.3800 above.<\/p>\n
With the USD\/CAD trading sideways around 1.3658, we see the market at a point of indecision. The key levels to watch are the 1.3709 resistance and the 1.3631 support. This tight range suggests that derivative traders should prepare for a potential breakout in the coming weeks.<\/p>\n
A move to the upside, clearing 1.3700, would likely be driven by strength in the US dollar. The latest US inflation data for March 2026 showed a stubborn 3.1% reading, reinforcing the view that the Federal Reserve will not be quick to cut interest rates. Traders anticipating this could consider buying call options with a strike price near the 1.3727 moving average to capture a move toward 1.3800.<\/p>\n
On the other hand, if sellers push the pair below 1.3631, the focus will shift to a stronger Canadian dollar. WTI crude oil prices have remained firm, currently trading over $85 a barrel, which provides underlying support for the loonie. To position for this, we could look at buying put options with a strike around 1.3600, targeting a test of lower levels near 1.3525.<\/p>\n
Given the conflicting momentum, a volatility play could be the most prudent strategy. We remember how the pair experienced sharp, unexpected moves in late 2025 following central bank commentary. A long straddle, buying both a call and a put option near the current price, would profit from a significant move in either direction before options expiry.<\/p>\n
If we expect this consolidation to continue ahead of the next jobs reports, an iron condor might be appropriate. This strategy would involve selling out-of-the-money puts and calls, defining a range where we expect the pair to remain. For example, selling options outside a 1.3550 to 1.3750 channel could collect premium while the market waits for its next catalyst.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD\/CAD held near 1.3658 after mixed sessions; bearish momentum persists unless 1.3700 breaks above resistance.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-48405","post","type-post","status-publish","format-standard","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\/48405","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\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=48405"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/48405\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=48405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=48405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=48405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}