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The USD/CAD pair has experienced a significant technical shift as it broke above key moving averages and the 50% retracement level of the 2026 trading range. This breakout, driven by renewed momentum in oil prices, has shifted the short-term bias to buyers. The pair now faces a critical resistance zone between 1.37149 and 1.37241, where a successful break above 1.37241 could target higher levels like 1.3738 and 1.37572. Conversely, a failure to hold above the 50% retracement at 1.37045 could trigger a bearish reversal. Traders are closely monitoring this pivotal level, as a sustained move beyond it would confirm bullish control, while a breakdown could reignite selling pressure. The outcome here will influence broader forex market sentiment, particularly for commodity-linked currencies like the Canadian dollar.
