The pair falls after failing to hold 1.3900, supported by higher oil prices and a temporary US-Canada tariff pause.
The USD/CAD pair retreated to 1.3876 after rejecting the 1.3900 resistance level, extending its bearish trend. The Canadian dollar gained support from a 6% rise in Brent crude prices over three days, nearing $90.00, and a last-minute deal delaying US tariffs on Canadian exports for three days.
Technical indicators show strong downside momentum, with the daily RSI near 32 and the MACD below zero. The 200-day SMA at 1.3850 remains a key support level, while further declines could target late May lows. The pair’s bearish bias persists amid stalled US-Iran negotiations and supply concerns in the Strait of Hormuz.
Markets now watch for sustained support at 1.3850, with broader sentiment leaning toward further CAD strength if oil prices hold gains.