The USDCAD is pushing higher in early North American trading and is now testing the February high at 1.37241. A sustained break above that level would strengthen the bullish bias and open the door toward the late-January high at 1.37383, followed by the 61.8% retracement of the 2026 trading range at 1.37572.
Yesterday, the pair initially moved lower following weekend tariff headlines. However, as traders reassessed the broader implications — particularly the risk that renewed U.S. trade pressure could extend toward Canada — the selling faded. At the same time, weaker equities contributed to a more cautious risk tone, weighing on commodity-linked currencies such as the Canadian dollar. That shift helped push USDCAD back toward the 50% midpoint of the 2026 range at 1.37045.
Before breaking to new session highs today, the pair leaned against that 50% retracement level, reinforcing its importance. The 1.37045 area now serves as a key bias-defining level. Staying above keeps buyers in control and maintains the upside momentum outlook.
A decisive break above 1.37241 should invite further upside acceleration. Conversely, a move back below 1.37045 would weaken the bullish case and could slow or stall short-term upside momentum.
