USD/CAD maintains bullish momentum near 1.4245, supported by a softening Canadian labour market and reduced expectations for a December Bank of Canada rate hike.
The pair holds near a one-month high around 1.4245, with TD Securities citing diverging labour data and fading BoC December rate-hike odds that should keep USDCAD supported above 1.40. Technicals back the bull case: RSI near 66 and price above the 50-, 100- and 200-day SMAs. The main counter is RSI approaching overbought, suggesting the move may need consolidation.
USD/CAD trades near a one-month high of 1.4245 as diverging labour market data and fading Bank of Canada rate-hike expectations bolster the US Dollar. Technical indicators, including an RSI of 66 and price positioning above key moving averages, suggest sustained buying interest despite the pair nearing overbought territory.
Diverging rate expectations â fading odds of a December Bank of Canada hike relative to the Fed â plus a softening Canadian labour market keep the Canadian Dollar under pressure, and analysts see the pair supported above 1.40.
Resistance sits at the October peak near 1.4300, with 1.4400 as the next psychological target. Supports are 1.4200, then 1.4120, with the 50-day SMA at 1.4074 and 100-day SMA at 1.4044 as a deeper cushion.