USD/CAD MOVES ABOVE 1.3850, UPSIDE SEEMS RESTRAINED DUE TO IMPROVED OIL PRICES

USD/CAD MOVES ABOVE 1.3850, UPSIDE SEEMS RESTRAINED DUE TO IMPROVED OIL PRICES

The USD/CAD currency pair has recently moved above the 1.3850 level, with the upside appearing limited due to improved oil prices.

USD/CAD is trading around 1.3860 during the Asian hours, halting its two-day losing streak.​

Oil prices have risen by 3.5% to $64.63 per barrel, following new U.S. sanctions limiting Iranian oil exports.

As Canada is a major oil exporter, the increase in oil prices has bolstered the Canadian Dollar, exerting downward pressure on USD/CAD. ​

Market activity is expected to remain subdued due to the Good Friday holiday, leading to lower trading volumes.

The Bank of Canada has paused its interest rate cuts, maintaining the benchmark rate at 2.75%, while the U.S. Federal Reserve is anticipated to ease rates, further weakening the U.S. Dollar. ​

Immediate resistance is at 1.3850, with further resistance at 1.3900.

Key support is at 1.3800, with further support at 1.3750.​
FXStreet

The bullish outlook for USD/CAD remains intact as long as the pair holds above the 1.3800 level.