Hello traders, let’s break down the CADUSD pair today!Canada’s CPI came in below expectations , yet CAD is still holding near its three-month highs , showing that the market views the Canadian dollar as stable and not under strong selling pressure. Meanwhile, the Bank of Canada keeping interest rates at 2.25% helps clarify policy expectations. As long as BoC does not signal further easing , CAD has a solid foundation to maintain relative strength against the USD.
On the U.S. side, the spotlight remains on NFP, the unemployment rate, and average hourly earnings . If these figures come in weaker than expected, the USD is likely to face pressure, creating a favorable scenario for CADUSD to extend higher. Conversely, very strong U.S. data may only trigger short-term volatility, not enough to break the current trend.
From a technical perspective, CADUSD is moving within a clear rising wedge , with price respecting the trendline and being supported from below by the Ichimoku cloud. The 0.7260 area is acting as near-term support, where price is consolidating firmly. The pattern of higher lows confirms that buyers remain in control.
As long as 0.7260 holds, the probability is high that price will continue its upward momentum toward 0.7310, a key psychological resistance . Current pullbacks should therefore be seen as “pauses to build momentum”, rather than signals of a trend reversal.
