The USD/CAD pair experienced significant volatility last week, spiking to a high of 1.4791 before pulling back sharply. Despite this correction, the pair found support around the 1.4260 level, a key area marked by the 38.2% Fibonacci retracement of the 1.3418 to 1.4791 rally, as well as the 55-day EMA, currently positioned near 1.4264. So far, no clear signs of a reversal have emerged, keeping the short-term bias neutral.

Short-Term Outlook
For now, USD/CAD is in a wait-and-see mode, with the initial bias neutral to start the week. A move above minor resistance at 1.4501 could signal a renewed push to the upside, potentially leading to a stronger rebound and a retest of the 1.4791 high. The larger bullish trend remains intact, suggesting that an eventual breakout above 1.4791 is likely over time.

Key Levels to Watch

• Upside: A break above 1.4501 would open the door for further gains and confirm a continuation of the broader uptrend.
• Downside: If the pair breaks firmly below the 1.4260 support level, it could trigger a deeper corrective phase, with the next targets near 1.4100.

Traders should keep an eye on key economic events, including trade-related news and any developments in the U.S. or Canadian economies, which could drive short-term fluctuations in the pair.