(Adds chart)

• USD/CAD upside momentum stalled ahead of 1.4250, now rotating lower to test range support at 1.4140

• 1.4140 marks key near-term support, a break would signal scope for a broader corrective pullback

• Sustained downside through this level opens 1.4000, with deeper support layered at 1.3930–67

• Positioning remains stretched, with net USD/CAD longs at highs since Jan 2025 - historically a reversal signal

• USD/CAD net longs are at the highest since January 2025 and are at levels that shortly follow a reversal

• Into U.S. CPI, a softer print would heighten squeeze risk and amplify downside pressure
USDCAD positioning


USDCAD chart


Justin McQueen is a Reuters market analyst. (The views expressed are his own) ((Email: ))