Canadian Dollar

Sr. Technical Strategist Michael Boutros highlights the levels that matter on the USD Majors, commodities & stocks into the weekly open.

USD/CAD plunged nearly 6.9% off the yearly highs with price now ranging just above trend support at the yearly low. Battlelines drawn on the short-term technical charts.

USD/CAD bears have come on quickly but for the past three weeks have largely stalled at support of 1.3846.

Over the past two trading sessions, the USD/CAD pair has posted a slight gain of 0.5% in favor of the U.S. dollar, although the overall bias remains bearish due to the greenback’s continued weakness in recent weeks.

USD/CAD is attempting to snap a seven-week losing streak with price now testing a multi-year uptrend. Battle lines drawn on the Canadian Dollar weekly technical chart.

U.S. Dollar bulls failed to drive a pullback and USD/CAD remains heavy after the pair reverted into its long-term range.

USD/CAD is working on its largest sell-off in more than four years and the pair is back in the long-term range that’s been in-play since 2016.

The longer-term range remains in-effect in USD/CAD, but the big question now is whether sellers can show follow through after a sizable reaction to resistance on Monday.

The U.S. Dollar took a major hit on Thursday with a bounce on Friday, moves that showed prominently in the USD/CAD pair. The longer-term range remains in place and this could keep bears in order until something changes.

Another key date for Trump tariffs comes into play next week after the Q2 open, with April 2nd being called ‘Liberation Day’ for the United States.

USD/CAD has been showing neutral price action in the short term. Over the last five sessions, price fluctuations have barely reached a 0.5% variation, as the pair continues hovering around a key barrier near the 1.43289 level.