The pair hovers near 1.4160 as traders await Canadian employment data and assess Fed rate hike prospects for 2026.
The USD/CAD pair recovered from a three-week low of 1.4135 to trade near 1.4160, remaining nearly flat for the day. The modest rebound follows a pullback in crude oil prices, which weighed on the commodity-linked Canadian dollar (CAD).
Traders are now focused on upcoming Canadian monthly employment data for fresh direction. The US dollar (USD) found support from expectations of at least one Federal Reserve rate hike in 2026 and geopolitical tensions in the Middle East.
Technical indicators suggest subdued upside momentum, with the pair trading below its 100-period simple moving average on the 4-hour chart. The MACD remains marginally negative, while the RSI hovers near 43, signaling potential downside risks.