USD/CAD Price Forecast: Bears look at 1.3850 support after rejection at 1.3900

USD/CAD pulls back below 1.3880 with bulls capped below 1.3900.
Higher Oil prices and the pause in new US tariffs have provided a fresh boost to the Loonie.
US Dollar bears are looking at the 200-day SMA, around 1.3850.

Guillermo Alcala FXStreet

The US Dollar (USD) resumes its broader bearish trend with the Canadian Dollar (CAD) drawing support from higher Oil prices and a deal with the US to pause 50% tariffs on Canadian exports. The USD/CAD pair returns to levels below 1.3880, following rejection at the 1.3900 area, with bears eyeing the support zone at 1.3850.

US and Canada reached a last-minute deal earlier on Wednesday to delay imposing new tariffs on a wide range of Canadian goods for three days, as negotiations towards a trade agreement advance.

Beyond that, Oil prices, Canada’s main export, keep growing as the US-Iran peace process remains stalled and markets brace for an extended closure of the Strait of Hormuz. Brent Oil appreciated beyond 6% over the last three days, returning to the $90.00 area, which hints at higher trade revenues for Canada.

Technical Analysis: Support at the 200-day SMA is on focus

USD/CAD trades at 1.3876, retaining a mildly bearish near-term bias with momentum indicators in the daily chart deeply into bearish territory. The daily Relative Strength Index (RSI) hovers near 32, just above oversold levels, and the Moving Average Convergence Divergence (MACD) is well below zero, highlighting solid downside pressure.

Dips have been supported at the confluence of the 200-day Simple Moving Average (SMA) and the bottom of the descending channel, in the 1.3850 area, but the rejection at 1.3900 confirmed that bears are in charge. Further down, the next target would be the late May lows in the 1.3770 area.

On the topside, the 1.3900 level should be broken to ease bearish pressure and clear the path towards a previous support area and the channel top, near the 1.4000 level.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Canadian Dollar Price Today

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.16%	-0.13%	-0.27%	-0.17%	0.24%	0.11%	-0.15%
EUR	0.16%		0.01%	-0.11%	0.03%	0.38%	0.24%	0.02%
GBP	0.13%	-0.01%		-0.11%	-0.01%	0.39%	0.24%	-0.02%
JPY	0.27%	0.11%	0.11%		0.11%	0.49%	0.35%	0.10%
CAD	0.17%	-0.03%	0.00%	-0.11%		0.38%	0.24%	-0.01%
AUD	-0.24%	-0.38%	-0.39%	-0.49%	-0.38%		-0.13%	-0.37%
NZD	-0.11%	-0.24%	-0.24%	-0.35%	-0.24%	0.13%		-0.24%
CHF	0.15%	-0.02%	0.02%	-0.10%	0.00%	0.37%	0.24%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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