USD/CAD: Break above 1.3024/43 resistance zone to set the pace for further gains – DBS Bank

FXStreet Insights Team FXStreet

Weak domestic oil prices have undermined the CAD, placing it on a defensive tone. However, USD/CAD needs to sustain a rally over a 1.3024 Fibonacci marker and 200-week moving average at 1.3043 to grease further upside momentum, Benjamin Wong, Strategist at DBS Bank reports.

Seasonality studies show CAD is usually on its backfoot in May

“The focus now rests on USD sustaining its bullish pace from recent 1.2403 lows over the 200-week moving average at 1.3043, and the 38.2% Fibonacci retracement of the 1.4668 (March 2020 peak) decline trough low at 1.2007 (June 2021 lows) at 1.3024. The technical indicators all have their tails up, thus siding with the bullish USD mode.”

“The Canadian Effective Exchange Rate measure reveals ongoing CAD weakness, and seasonality studies shows CAD is usually on its backfoot in May.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold bounces back toward $5.200 amid sustained safe-haven flows

Gold bounces back toward $5,200 in Wednesday's Asian session, moving away from an over one-week low. Sustained safe-haven flows, amid escalating geopolitical tensions in the Middle East, act as a tailwind for the bullion. However, a bullish US Dollar and reduced bets for more aggressive easing by the US Fed might keep a lid on the non-yielding yellow metal ahead of the US ADP report and ISM Services PMI data due later in the day.