USDCAD has dropped below the 1.40 level after previously testing the 1.47 resistance during peak tariff fears. With the dollar index weakening and trade-related concerns easing, USDCAD has pulled back to a key trendline on the daily timeframe.
Since 2015, USDCAD has traded within a broad range between 1.20 and 1.47. After testing the 1.20 support in mid-2021, the pair entered a steady uptrend, which is now being tested once again. In addition to the rising trendline, there is also a horizontal support zone at 1.37–1.3880—previously a key resistance area during the 2023–2025 period. This convergence of trendline and horizontal support could provide strong support.
As long as the trendline holds, this test may offer a medium-term buying opportunity with a well-defined support area. Potential upside targets include 1.4020 and 1.4175, with a possible medium-term push back toward 1.47 if broader conditions align.
Since 2015, USDCAD has traded within a broad range between 1.20 and 1.47. After testing the 1.20 support in mid-2021, the pair entered a steady uptrend, which is now being tested once again. In addition to the rising trendline, there is also a horizontal support zone at 1.37–1.3880—previously a key resistance area during the 2023–2025 period. This convergence of trendline and horizontal support could provide strong support.
As long as the trendline holds, this test may offer a medium-term buying opportunity with a well-defined support area. Potential upside targets include 1.4020 and 1.4175, with a possible medium-term push back toward 1.47 if broader conditions align.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.