USD/CAD Price Forecast: Extends Rally to 1.3870, New High from April 13 on Stronger USD

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We can see that the USD/CAD pair is building on the momentum of the previous day’s breakout, passing through the 1.3810-1.3815 confluence hurdle and gaining positive strength for the third day in a row on Thursday. During the Asian session, spot prices are climbing towards 1.3870, a fresh high since April 13, and remain well supported by a much stronger US dollar (USD).

The latest developments related to the crisis in the Middle East provide hope for a diplomatic solution that will end the three-month-long war in Iran and benefit the USD as a protected haven. Moreover, another factor supporting the dollar and the USD/CAD pair are bets that the US Federal Reserve (Fed) will escalate interest rates in 2026. Meanwhile, the upside move appears unaffected by a sturdy recovery in crude oil prices, which tends to support the commodity-linked Loonie, suggesting the path of least resistance for spot prices is up.

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From a technical perspective, the USD/CAD pair maintains a constructive bullish bias after Wednesday’s sturdy close above the 200-day basic moving average (SMA) and the 61.8% Fibonacci retracement level on the April-May slide. The next upward move is near the 78.6% Fibo. remains steady in overbought conditions, with the Relative Strength Index hovering near 70. That said, the moving average divergence (MACD) line above zero with a positive histogram suggests that upside pressure continues to dominate even if the pair is stretched in the miniature term.

Hence the move beyond the 78.6% Fibo. a retracement around 1.3875 towards the recent high near 1.3963 seems very likely. A break above the latter would open the way to a more apparent extension of the uptrend. On the other hand, initial support is seen at the 200-day SMA and 61.8% retracement near 1.3810, followed by 50% retracement at 1.3758 and 38.2% retracement at 1.3709. Deeper pullbacks towards 1.3649 and 1.3552 could likely only come into effect if the current bullish structure weakens.

(The technical analysis for this story was written with the lend a hand of an AI tool.)

USD/CAD daily chart

Today’s US dollar price

The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the New Zealand dollar.

USD EUR GBP JPY BOOR AUD NZD CHF
USD 0.29% 0.36% 0.03% 0.18% 0.53% 0.54% 0.30%
EUR -0.29% 0.08% -0.28% -0.12% 0.24% 0.28% 0.02%
GBP -0.36% -0.08% -0.36% -0.21% 0.17% 0.20% -0.08%
JPY -0.03% 0.28% 0.36% 0.12% 0.49% 0.50% 0.27%
BOOR -0.18% 0.12% 0.21% -0.12% 0.38% 0.39% 0.13%
AUD -0.53% -0.24% -0.17% -0.49% -0.38% 0.04% -0.24%
NZD -0.54% -0.28% -0.20% -0.50% -0.39% -0.04% -0.26%
CHF -0.30% -0.02% 0.08% -0.27% -0.13% 0.24% 0.26%

The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

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