USD/CAD steadies amid US Dollar weakness, lower Oil prices

💡 DMK Insight

USD/CAD is hovering around 1.3665, and here’s why that matters right now: After last week’s pullback from a monthly high, the pair’s struggle to reclaim the 1.3700 level indicates a critical battleground for traders. This psychological threshold often acts as a resistance point, and failure to break above it could signal further downside risk. If the pair continues to hold below 1.3700, traders might want to consider short positions, especially if the broader market sentiment leans bearish. Keep an eye on economic indicators from both the U.S. and Canada this week, as any surprises could trigger volatility. The recent stability suggests a consolidation phase, but the potential for a breakout or breakdown is palpable. On the flip side, if USD/CAD manages to break above 1.3700, it could attract momentum traders, pushing the pair higher. Watch for any significant news releases or shifts in oil prices, as they can influence the CAD’s strength against the USD. The next few days will be crucial—monitor the 1.3700 level closely for potential trading opportunities.