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The start of the trading week has not been particularly favorable for the Canadian dollar. Over the last two trading sessions, USD/CAD has gained more than 0.6% in favor of the U.S. dollar, reflecting a loss of momentum for the CAD in the short term.
USD/CAD was in a hard sell-off driving the pair into deep oversold conditions to finish last week. But an early-week bounce is squeezing shorts as a dual tariff announcement has unsettled the backing fundamentals in the pair.
Over the last 3 trading sessions, the Canadian dollar has shown signs of strength, reflected in a USD/CAD decline of nearly -0.43%, marking a short-term bearish bias. This pressure has held steady following the release of Canada's inflation data and amid expectations of progress in tariff negotiations, keeping the Canadian currency from losing ground.
Over the last few sessions, the USD/CAD has seen a slight appreciation of nearly 0.3% in favor of the US dollar. However, beyond this mild bias, the broader chart picture reflects a prolonged consolidation.
USD/CAD threatened a breakout after the last Fed meeting but ultimately failed to leave the 1.4200 level behind. Since then, 1.4000 has come in as key support but can bulls maintain the move through this FOMC announcement?
USD/CAD rebounded sharply from the monthly lows, but the rally now faces a pivotal breakout zone that could decide the next major move. Fed on tap.
Despite the Canadian dollar’s recovery attempts in previous weeks, a renewed loss of strength against the U.S. dollar is becoming evident. This is reflected in USD/CAD, which has gained more than 0.2% over the last 2 trading sessions, including the close of last week and the first session of this week.
USD/CAD has rebounded sharply from trend support with the recovery setting the stage for technical showdown at pivotal resistance.
It has not been an easy start to the week for the Canadian dollar. Now, renewed weakness in the currency is becoming evident, while USD/CAD has gained more than 0.6% over the last 2 trading sessions, reflecting U.S. dollar strength and a new loss of momentum in the CAD.
The trading week continues to advance and, for now, the Canadian dollar has started to lose the strength it had shown in previous sessions. USD/CAD movements are barely registering a short-term variation near 0.05%, highlighting a loss of momentum.
Since the final days of June, the Canadian dollar has been unable to build relevant strength against the U.S. dollar. Now, average USD/CAD movements remain close to 0.2% in the short term, showing a neutral bias that has become evident again in the behavior of both currencies.
USD/CAD is consolidating just below resistance into the start of July, and a breakout here could define the next move.
USD/CAD is testing its first meaningful support since breaking to fresh yearly highs, with the next move likely to shape the July outlook.
