The USDCAD is trading at new highs as the week draws to a close — a sharp turnaround from the early-week tone, when sellers were in control through Tuesday and Wednesday. That changed after the Fed’s rate cut, as Chair Powell emphasized that the Fed is not on a pre-set path to ease again in December. The comments triggered a rebound in the dollar, pushing USDCAD higher.
Technically, the pair reclaimed the broken 200-day moving average at 1.3927, retested it successfully yesterday, and then extended higher. The price also broke above the 200-hour MA at 1.39855 after briefly closing below it on Thursday while holding the 100-hour MA support near 1.3967. Today’s break above the 200-hour MA drew in fresh buyers and drove the pair to new weekly highs.
The next upside target comes at last Friday’s high of 1.4038. A sustained move above that level would open the door toward the October swing area between 1.4060–1.4067, followed by the monthly high near 1.4079.
On the downside, the 1.4000 area remains the near-term risk level, with support layered at 1.4004 (swing level) and the psychological round number itself.
Bottom line: Momentum has shifted firmly to the buyers heading into the weekend, with the trend favoring further upside while 1.4000 holds as support.
