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USD/CAD tests 1.3850 support after rejection near 1.3900
The pair is trading below 1.3880 as bears target the late May lows around 1.3770, with Brent above $90.0 and a short pause in US tariffs on Canadian exports supporting CAD.
FXStreet said the USD/CAD pair is back below 1.3880 after being rejected near the 1.3900 area, with traders focusing on support around 1.3850. The analysis frames the move as a resumption of USD weakness versus CAD, tied to both oil price strength and a US-Canada trade development.
According to FXStreet, the two countries reached a last minute deal on Wednesday to delay new tariffs on a wide range of Canadian goods for three days while negotiations on a broader trade agreement continue. The outlet linked CAD support to Canada’s oil-linked export profile, noting Brent has climbed more than 6% over the prior three days to around $90.0.
FXStreet also cited technical signals, including a daily RSI near 32, just above oversold levels, and a MACD well below zero, as evidence of continued downside pressure. It said dips have found support near the 200-day simple moving average and the lower end of a descending channel in the 1.3850 zone, with the next downside objective at the late May lows near 1.3770.
On the upside, FXStreet said breaking back above 1.3900 would be needed to ease bearish pressure and open a path toward prior levels, including a previous support area and the channel top near 1.4000. It added that the Strait of Hormuz remains a market focus, with an extended closure risk discussed alongside the US-Iran peace process stalling.
Latest closeBrent $88.59 ▲1.8%