The Canadian Dollar (CAD) stayed fairly steady against a stronger US Dollar (USD). It held up better than many major currencies, helped by stable risk mood and record levels in the S&P 500.<\/p>\n
Moves in the CAD were limited, with little domestic news to drive trading. Day-to-day direction was tied mainly to the wider USD trend and the market risk backdrop.<\/p>\n
Stocks were slightly lower in early trading, after the S&P 500 reached another record high the day before. The USD\/CAD rate rose for a third day, but the short-term setup was still described as bearish.<\/p>\n
The USD move was framed as a small rebound from Tuesday\u2019s low, with patterns such as a bear flag or wedge mentioned. Trend indicators were said to remain bearish across intraday, daily, and weekly timeframes.<\/p>\n
Resistance for USD\/CAD was placed in the low to mid-1.37 area. Support was seen at 1.3625, with the next level described as the low 1.35s.<\/p>\n
The Canadian Dollar is showing notable resilience, outperforming other major currencies against the US Dollar. This strength is supported by robust risk sentiment, with the S&P 500 closing above 5,900 last week. It suggests that positive market mood is currently outweighing broad USD strength for the CAD.<\/p>\n
Given the weak technical backdrop for USD\/CAD, we see the current minor bounce as an opportunity to position for further downside. We view any move into the low-to-mid 1.37s as a strong selling zone for entering short futures positions or buying put options. Trend indicators across weekly and daily charts reinforce this bearish bias.<\/p>\n
Fundamentally, the CAD is underpinned by firm WTI crude prices, which have held above $85 per barrel this month. Canada\u2019s latest CPI reading for March 2026 came in at a stubborn 2.9%, suggesting the Bank of Canada may remain hesitant to cut rates ahead of the Fed. This policy divergence gives the CAD a supportive yield advantage.<\/p>\n
This marks a significant shift from the market dynamics we observed in 2025, when aggressive Fed tightening consistently pushed the USD higher. The failure of USD\/CAD to break and hold above the 1.38 level earlier this year indicates that the upward momentum from last year has faded. Traders should adjust for this new regime.<\/p>\n
For traders using options, consider establishing bearish positions like bear put spreads to cap risk while targeting a move lower in the pair. The initial support at 1.3625 serves as a first target, with a fuller move toward the low 1.35s being the ultimate objective in the coming weeks. Monitor these levels closely as potential profit-taking zones.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Canadian Dollar held steady despite stronger USD, supported by risk sentiment; USD\/CAD rose slightly but bearish.<\/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-48497","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\/48497","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=48497"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/48497\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=48497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=48497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=48497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}