USD/CAD Price Forecast: RSI Enters Overbought Territory as Bears Defend 1.4000

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USD/CAD is in the spotlight on Friday as lower oil prices weigh on the commodity-linked Canadian dollar (CAD) amid cautious optimism that the United States (US) and Iran can reach an agreement to reopen the Strait of Hormuz.

At the time of writing, the pair is trading around 1.3979, after hitting 1.4024 on Thursday, the highest level since November 2025. Meanwhile, West Texas Intermediate (WTI) crude oil is trading near $83.50 per barrel, near two-month lows.

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The Canadian dollar has remained under sustained pressure since early May as geopolitical tensions keep safe-haven capital flows towards the US dollar (USD). Additionally, the relative strength of the U.S. economy and favorable interest rate differentials between the U.S. and Canada remain a major headwind for Loonie.

However, overbought conditions on the daily chart may limit further gains in the near future. Still, the broader trend remains bullish, with the pair holding above key moving averages.

Technical analysis:

On the daily chart, USD/CAD maintains a bullish bias in the tiny term as price remains above the 50-, 100- and 200-day elementary moving averages (SMAs).

An overbought relative strength index (RSI) near 75 and a strengthening average directional index (ADX) near 33 suggest a powerful but extended uptrend, suggesting continued gains may continue while increasing the risk of a corrective pause.

Upside, immediate resistance is at the psychological break of 1.4000, followed by a higher barrier at 1.4100.

On the other hand, initial support is seen at the 200-day SMA near 1.3817, ahead of the 50-day SMA near 1.3767 and the 100-day SMA near 1.3729, where declines can be expected to attract buying interest while the broader bullish structure remains intact.

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

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 Swiss franc.

USD EUR GBP JPY BOOR AUD NZD CHF
USD 0.04% 0.01% 0.14% 0.09% 0.00% 0.07% 0.22%
EUR -0.04% -0.03% 0.11% 0.06% -0.02% 0.03% 0.18%
GBP -0.01% 0.03% 0.15% 0.09% -0.02% 0.06% 0.21%
JPY -0.14% -0.11% -0.15% -0.08% -0.17% -0.10% 0.04%
BOOR -0.09% -0.06% -0.09% 0.08% -0.09% -0.03% 0.13%
AUD -0.01% 0.02% 0.02% 0.17% 0.09% 0.04% 0.20%
NZD -0.07% -0.03% -0.06% 0.10% 0.03% -0.04% 0.16%
CHF -0.22% -0.18% -0.21% -0.04% -0.13% -0.20% -0.16%

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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