USDCAD sellers tried to press a pullback on Monday after the pair rose to 1.3953, its highest level since April 6. The move pushed above the April 6 high at 1.3948, but it stopped short of the March 31 peak at 1.3966.
USDCAD loses momentum near 2026 high
The failure to reach 1.3966 drew profit-taking and helped send the pair lower. Broader U.S. dollar selling also picked up during the North American session. Meanwhile, U.S. equities rebounded, which reduced some demand for the dollar as a defensive asset.
Treasury yields also moved lower. The 2-year yield fell 3.6 basis points, while the 10-year yield dropped 1.8 basis points. As a result, USDCAD gave back part of its recent gains after the breakout attempt lost steam.
USDCAD sellers face nearby resistance
From a technical view, the reversal pushed USDCAD back below the 100-bar and 200-bar moving averages on the 5-minute chart. Those averages sit near 1.3942, and the pair was trading around 1.3931. Therefore, that area now acts as close resistance.
Sellers still need more follow-through to take firmer control. They would need to break below the 38.2% retracement of Friday’s low at 1.3919. After that, the 50% retracement at 1.3909 would come into view.
If buyers regain control, they would first need to move back above the short-term moving averages. Attention would then return to 1.3953 and the March 31 high at 1.3966. A break above that level would strengthen the bullish case and keep focus on the recovery that has been in place since the May 1 low near 1.3549.
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