Canadian Dollar Technical Outlook: USD/CAD Five-Week Rally Sets Up Major Breakout Test
USD/CAD is holding near fresh yearly highs, with a tight October range keeping the focus on a potential breakout through major resistance.
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Canadian Dollar Technical Outlook: USD/CAD Multi-Timeframe Analysis
The USD/CAD rally has reached five straight weekly gains, stalling at the 61.8% retracement of the 2025 decline as a tight trading range forms. Michael Boutros, StoneX Media Senior Market Analyst, walks through USD/CAD on the weekly, daily and four hour charts and sets out the data calendar ahead. Only three of the last 21 sessions have closed lower, and momentum remains overbought inside an ascending pitchfork, with a break of trendline support marking the risk of a larger correction. Fed funds futures have priced out a Federal Reserve rate hike this month while still pricing roughly 86% odds of another increase in December. Canadian employment data, the University of Michigan consumer survey and the U.S. consumer price index are next for the Canadian dollar.
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--- Written by Michael Boutros, Senior Technical Strategist
Follow Michael on X @MBForex
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