Why USD/CAD is climbing toward resistance

USD/CAD is pushing higher as US and Canadian data pull in the same direction.

USD/CAD has gained after a soft Canadian jobs report weighed on the loonie, while Fed minutes showing most officials see another hike by year end have kept the dollar bid. The pair is trading above its EMAs with RSI at 65, pointing to bullish momentum, though it has so far failed to clear resistance near 1.4245-1.4284. Traders may watch whether it can close above that zone or fade back toward support.

USD/CAD pushes higher but struggles to clear key resistance

USD/CAD has gained ground, trading near 1.4272 after a jump driven by fresh data. The pair remains below its recent resistance levels despite the move.

Momentum looks bullish, with the pair above its 9, 20 and 50-day EMAs on the daily chart.

Soft Canadian jobs data and hawkish Fed minutes are behind the move

A weaker-than-expected Canadian employment report has weighed on the loonie, while Fed minutes showed most officials expect another hike by year end.

Together, these two forces have pushed USD/CAD higher this week.

Traders may watch whether resistance near recent highs finally breaks

The pair's nearest resistance sits at 1.4284, a level that has capped gains before. A close above it could suggest the bullish move has more room.

Support near 1.4203 is also in focus if momentum fades.

The chart right now

• Resistance: 1.4245
• Support: 1.4150

What to watch

• USD/CAD nearest resistance (4h swing high): 1.4284: a close above this level could suggest the bullish move has more room, though it has capped gains before.
• USD/CAD nearest support (4h swing low): 1.4203: a break below here could signal the recent push higher is losing steam.
• Whether Fed hike expectations continue to firm after the minutes: shifting rate expectations could keep influencing dollar demand against the loonie.

Educational information only. Not investment advice. Trading involves risk of loss.