CAD  – USD/CAD Retreats After Double Top Formation

Market participants widely expect the Bank of Canada to hold rates steady on Wednesday, fully priced in a potential rate hike before December 2026.

The Canadian dollar hit a 10-week high on Friday, boosted by strong jobs data. Technically, both the RSI and Stochastic Oscillator are retreating, and the pair encountered resistance again near 1.41 early last week. Having retreated from this area twice in November, it shows an initial double top pattern, with the neckline referenced at the November 18 low of 1.3969. A break below this level would likely lead to further declines. Current support is seen at 1.38 and the September 17 low of 1.3723, with key levels at 1.3570 and 1.35. Resistance is expected at 1.39 and 1.3930, with the next levels at 1.40 and 1.4140.

Forecast range:
Resistance: 1.3900 - 1.3930 – 1.4000 – 1.4140
Support: 1.3800 – 1.3723 – 1.3570 – 1.3500

Key Focus:
Wednesday
Bank of Canada Interest Rate Decision (22:45)

Any questions? contact our professional analysis team