• USD/CAD holds above 1.42 and is back poking through the summer peak at 1.4248

• In turn, the uptrend remains intact but with momentum is slowing

• RSI is flashing a mild bearish divergence - signal is weak for now, but it is another hint at a rally losing steam

• Looking back, spot has rarely sustained above these levels over the past decade outside crisis episodes (2016/2020/2025)

• Though this adds to the pullback view, reversal signals remain lacking

• There is also little appetite to lean against USD as dips are still finding solid demand

• A sub-1.42 move would raise pullback risks, but a clean break above 1.43 would further underpin the trend

• That said, the pair looks to be in consolidation mode between 1.42-1.43 for now
USDCAD hourly


USDCAD weekly chart

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