USD/CAD turns higher for second week, tests 50-SMA

USDCAD rises above 1.3700 as gains extend for second consecutive week.
Technical bias remains positive, but caution emerges near 50-SMA.

Christina Parthenidou XM

USDCAD has traded mostly in positive territory since the beginning of May. After stabilizing around the 1.3500 region for the third time this year, the pair is now attempting to close above its 50-day simple moving average (SMA) near 1.3735. The move follows President Trump’s comments expressing limited patience over Iran-related tensions, while two-day talks with China conclude.

Both the RSI and the MACD suggest improving buying momentum. However, the stochastic oscillator, which is hovering in overbought territory, signals caution as the pair tests the 38.2% Fibonacci retracement of the November–February decline near 1.3735. A decisive break above this level could pave the way toward the 200-day SMA and the 50.0% Fibonacci retracement at 1.3810. Slightly higher, a critical battle could emerge around the descending trendline connecting the 2025 and 2026 highs near 1.3860.

If the pair fails to maintain momentum above the 50-day SMA, it could retreat toward the 23.6% Fibonacci level at 1.3640. A deeper pullback may then retest the 1.3500-1.3550 zone, a break of which could reinforce the broader bearish outlook and expose the 2024 support level at 1.3420.

Overall, USDCAD remains in a bullish short-term mode, with further gains likely if buyers manage to clear the 1.3735 resistance area decisively. Nevertheless, the broader outlook remains bearish as long as the pair stays below 1.3860.

Author

Christina Parthenidou

Christina joined Trading Point in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

GBP/USD advances to three-month peak near 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May at around 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD climbs to 10-week high above 1.1600 on broad USD weakness

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1600 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

Gold climbs 2% as US Treasury buyback plan pressures long-term yields

Gold (XAU/USD) enters Wednesday’s American trading hours with decent intraday gains, as a softer US Dollar (USD) and a sharp pullback in long-term US Treasury yields help the metal recover all the previous day’s losses.

Crypto Today: Bitcoin, Ethereum, XRP defend key support as ETF inflows return

Bitcoin’s upside remains capped on Wednesday while the downside appears strongly supported above $64,000. The Crypto King’s early week rebound lost momentum near $65,000 as investors assessed the impact of geopolitical tensions in the Middle East.

Minutes of the July FOMC meeting serves as one of today’s economic highlights

Bear steepening turned into bear flattening in Europe yesterday. Daily changes on the German yield curve ranged between +2.4 bps (30-yr) and +5 bps (2-yr). EU swap rates added 0.9 bps (30-yr) to 4.5 bps (2-yr). The US/Iran stalemate and higher energy prices offer a first explanation.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.