Insights 
VT 
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 1.4110–1.4165 range.
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.
Market Insights And Updates
Additional insights from internal and external experts are included. The content is aimed purely at informational purposes, without any financial advice or recommendations.
Other editor’s picks include market movements and updates on consumer sentiment indices and currency pairs against the US dollar. For those seeking broker-related content, various articles provide guidance on selecting the best brokers for 2025.
FXStreet notes that all market observations include risks and are for informational purposes only, with no responsibility for losses incurred. They advise conducting thorough research before making any decisions, as all risks, losses, and costs are the responsibility of the individual.
Strategic Implications For USD/CAD
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.
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.
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.
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.
