USD/CAD traded strongly on Friday, reaching 1.4024 on Thursday, its highest level since November 2025, before settling around 1.3979 at the time of writing [1]. The Canadian Dollar (CAD) came under pressure as West Texas Intermediate (WTI) Crude Oil hovered near $83.50 per barrel, close to two-month lows, reflecting the impact of lower oil prices on the commodity-linked currency [1]. Geopolitical tensions and cautious optimism regarding a potential US-Iran agreement to reopen the Strait of Hormuz contributed to safe-haven flows favoring the US Dollar (USD) [1].
The USD's strength was further supported by the relative resilience of the US economy and favorable interest rate differentials between the US and Canada, which have been key headwinds for the CAD since early May [1]. Technical analysis indicates that USD/CAD maintains a bullish near-term bias, with the price holding above the 50-, 100-, and 200-day Simple Moving Averages (SMAs) [1]. The Relative Strength Index (RSI) is near 75, signaling overbought conditions, while the Average Directional Index (ADX) around 33 suggests a strong but stretched uptrend, hinting at the possibility of continued upside but also a risk of a corrective pause [1].
Immediate resistance is noted at the psychological 1.4000 level, with a higher barrier at 1.4100. On the downside, support is seen at the 200-day SMA near 1.3817, followed by the 50-day SMA at 1.3767 and the 100-day SMA at 1.3729, where dips are expected to attract buying interest as the broader bullish structure remains intact [1].
According to the daily percentage change table, the US Dollar was the strongest against the Swiss Franc, gaining 0.22%, and rose 0.09% against the Canadian Dollar [1].
CONCLUSION
USD/CAD's surge to multi-year highs reflects a combination of lower oil prices, geopolitical uncertainty, and favorable US economic conditions. Technical indicators suggest the uptrend may persist, though overbought signals raise the risk of a near-term pause. The market impact is high, with the USD continuing to outperform the CAD and other major currencies.