2026-02-24 04:33:00
The U.S. and Canada are taking their rivalry off the ice and straight into the charts.
USD/CAD is pressing up against a major resistance zone. Will the dollar keep its weeks-long rally alive?
Or will Loonie traders strike back and defend this ceiling like it is Finals overtime?
Stronger-than-expected mid-tier and labor-related data have nudged traders back toward the U.S. dollar, restoring some of its safe-haven appeal as geopolitical tensions linger.
At the same time, firm crude oil prices are putting a floor under the Canadian dollar, helping cap USD/CAD’s upside and keeping the pair from running too far too fast.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CAD has been grinding higher since mid-February and is now testing the 1.3700 psychological handle. That level lines up with the 4-hour 200 SMA, the R1 at 1.3724, and the range resistance that has held since late January.
It also sits just beneath a longer-term trend line resistance, which could further cap buying pressure if dollar bulls run out of steam.
If we see clear bearish candlesticks and a firm rejection around 1.3700, the pair could ease back toward the 1.3600 mid-range area, with a deeper pullback exposing the 1.3500 range support zone.
On the flip side, if momentum from the past few weeks carries through, a clean break above 1.3700 would put USD/CAD on track to challenge higher inflection points beyond the longer-term trend line, including 1.3800 and possibly 1.3850.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art highlights USD/CAD’s major resistance zone. But as any pro will tell you, a great setup can still fail if the trader lacks the discipline to execute around it well.
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