The USDCAD extended its rally to a new high of 1.3953 today, the highest level since April 6.
In doing so, the pair pushed above the April 6 high at 1.3948, signaling continued bullish momentum
However, the move stalled just short of the March 31 high at 1.3966, which remains the highest level of 2026 and an important technical target for buyers. The inability to reach and test that key resistance level attracted profit-taking and helped trigger a reversal lower as broader U.S. dollar selling emerged during the North American session. Part of the shift in sentiment came as U.S. equities rebounded, reducing some of the defensive demand for the U.S. dollar.
At the same time, Treasury yields moved lower, with the 2-year yield falling 3.6 basis points and the 10-year yield declining 1.8 basis points, also taking some support away from the greenback. As a result, the USDCAD began to retrace a portion of its recent gains after failing to sustain the breakout to new highs. From a technical perspective, the reversal has taken the price back below the 100- and 200-bar moving averages on the 5-minute chart, both of which are currently clustered near 1.3942.