The USD/CAD pair is climbing above the 1.3900 level during Thursday’s early European session, strengthening its bullish momentum after holding above the key 100-day simple moving average. The US dollar is gaining ground against the Canadian dollar as markets react to renewed diplomatic optimism following a ceasefire agreement between Israel and Lebanon.
Traders are closely monitoring this technical breakout as the pair maintains position above a critical long-term moving average, suggesting potential for further upside. The strengthening greenback is pressuring the commodity-linked Canadian dollar, with the pair showing positive momentum in early European trading hours. Foreign exchange traders and brokers should watch for sustained moves above 1.3900 as confirmation of bullish continuation.
FXnCO Insight
Traders should consider the 100-day SMA as a key support level for USD/CAD positioning, with sustained trading above 1.3900 potentially opening the door to further dollar strength against the loonie.
Source: FXStreet