USD/CAD climbed for a second straight day on Monday as a firmer US Dollar lifted the pair to a fresh daily high. It remains locked in a two-week range, with traders waiting for a breakout before pushing higher.
USD/CAD built on last week's bounce from the mid-1.4100s and gained ground for the second consecutive day on Monday, reaching a fresh daily high around the 1.4215 region during the early European session. A firmer US Dollar drove the move. An uptick in Crude Oil prices, however, could support the commodity-linked Loonie and cap the pair's gains.
Range holds as bulls wait for a breakout
The pair remains confined within a familiar range held over roughly the past two weeks. Against a strong rally from the late April swing low, the price action may still be read as a bullish consolidation before the next leg up. USD/CAD also holds comfortably above the 100-period Simple Moving Average on the 4-hour chart, which reinforces a constructive underlying trend.
Momentum indicators are supportive rather than stretched. The Relative Strength Index sits around 56, and the MACD line hovers slightly above zero, hinting that upside pressure remains but lacks a strong driver for now. Therefore, traders may wait for follow-through buying beyond the 1.4245-1.4250 region — the highest since April 2025 — before positioning for further gains.
Support levels and the wider backdrop
On the downside, initial support sits at the 1.4217 area as an intraday pivot, with the 100-period SMA near 1.4142 offering a more substantial floor if a deeper pullback unfolds. As long as the pair stays above that moving average, dips are likely to be viewed as corrective within the broader uptrend.
The broader tone stays bullish. DailyForex analyst Christopher Lewis noted a very bad US jobs report on Thursday but expects the interest rate differential to keep favoring the USD, alongside concerns over US trade agreements with Canada and Mexico. He sees room toward 1.45 given enough time, while a break below 1.3950 would be needed before he considers selling.
Sources: FXStreet, DailyForex
Trading involves risk.
Risk Disclaimer
