The USD/CAD pair continues to bounce around due to the lack of momentum. The US dollar remains slightly more favored, but short-term back and forth threading is possible. Support can be found at the 50-day EMA and the 1.36 level where the 200-day EMA hangs about. The US dollar may punish the Canadian dollar, but its strength may be limited. The US economy is doing better overall, but all economies have major issues. The slightly positive greenback may be used in times of concern and malaise. The interest rates in America are higher than Canada, and the Bank of Canada has already started cutting rates. [a7bdc76c]
The US dollar initially rallied against the Canadian dollar but faces resistance near the 1.3750 level. Breaking above this level could lead to a move towards the 1.3850 level. Short-term pullbacks are possible, with the 50-day EMA providing potential support near the 1.37 level. The 1.37 level is minor support, but breaking below it could push the market down to the 1.36 level. The Canadian economy has several issues, making it difficult to short the US dollar against the Canadian dollar. The 200-day EMA is approaching, offering a potential floor. The US economy is outperforming Canada, and this trend is expected to continue. The US produces enough crude oil for itself, changing the overall attitude of the USD/CAD pair. Central bank differential is now a focus. Canada is dependent on the US economy. [1e0fa1c8]