USD/CAD Price Forecast: US Dollar Rises in Same Range

from Daily Forex. This is Christopher Lewis taking a look at the US dollar against the Canadian dollar. The US dollar gap higher to kick off the trading week against the Canadian dollar, which makes sense as rates are still elevated in the United States. And of course, we just got horrible jobs numbers coming out of Canada. So therefore, it's worth watching very closely how this pair plays out. The 2025 beginning was right around this area and the 1.4250 level was support in a major cluster. That being said, the situation is much different now as we have to keep in mind that the interest rates in America are higher because of higher energy input cost and just inflation in general. and Canada is backed by oil, but it's not as big of a deal in this pair as it is in other places. So, while it does provide a little bit of a drag on the US dollar strength against the Canadian dollar, the reality is this is a pair that I think probably still favors the US dollar unless we can break down below the 1.42 level. If we break down below there, then we have a potential uh shot of taking a big dip towards the 50-day EMA. I'm not necessarily convinced that could happen. But if it were, then we have a potential uh move of not only there, but maybe even a little bit deeper. the uh move bouncing from here and the market taking out the 1.343 level could open up a situation where we go much higher, probably 1.45 before it's all said and done. Interest rate differential continues to favor the United States and probably will for the foreseeable future.