Title: USD/CAD Under Sustained Buying Pressure Amid Bullish Momentum – In-Depth Analysis
Original article source: Economies.com, “The USDCAD Is Surrounded by Positive Pressure – Analysis – 30-09-2025” by Economies.com analysts
Date of Original Publication: September 30, 2025
Introduction
The USD/CAD currency pair has recently experienced intensified upward momentum, supported by both technical indicators and macroeconomic developments. As currency traders evaluate potential positioning opportunities, it is essential to analyze the prevailing bullish patterns, economic backdrops, and market sentiment that currently surround the U.S. Dollar against the Canadian Dollar. According to technical analysis shared by Economies.com on September 30, 2025, USD/CAD prices are facing ongoing positive pressure, and the pair could be preparing for a breakout above a key resistance level.
This expanded analysis builds on the information provided in the original report by Economies.com, exploring in greater depth the technical configurations, fundamental drivers, and potential futures for the USD/CAD pair. Readers can use this detailed breakdown as a reference point when evaluating trades or understanding the current sentiment driving one of the most-traded forex pairs globally.
Technical Outlook
Technically, the USD/CAD pair remains in a consolidation phase while staying above crucial support levels. Although the momentum appears slightly restrained in the short term, the broader outlook points toward continued bullish pressure that may push the pair to new highs.
Key takeaways from the technical analysis:
– The USD/CAD pair is currently hovering around the 1.3500 level, a psychologically significant resistance point that has acted as a pivot in recent weeks.
– The pair benefits from persistent support near the 1.3400 zone, which reinforces its bullish structure.
– The 50-day Exponential Moving Average (EMA) is trending upward beneath the current price, indicating underlying strength and buyer support.
– The MACD (Moving Average Convergence Divergence) remains in the positive territory, showing increased buying momentum.
– RSI (Relative Strength Index) is above 60, suggesting that market conditions favor the bulls, although not yet at overbought levels.
According to Economies.com, the expected scenario is that the USD/CAD will move higher as it breaks above the immediate resistance zone. Crossing above 1.3510 could open the door to 1.3610 and even 1.3700 if the bullish structure holds.
Resistance and Support Levels to Watch
To assist traders in planning entries and exits, here’s a list of the most relevant technical levels:
Support Levels
– Minor support at 1.3460
– Stronger support around 1.3400
– Key psychological support around 1.3300
Resistance Levels
– Immediate resistance at 1.3510
– Medium-term target at 1.3610
– Long-term resistance at 1.3700
It’s worth noting that a break below the 1.3400 support zone could threaten the integrity of the prevailing upward trend, pushing the pair into a corrective phase.
Fundamental Drivers
The movement of USD/CAD is significantly influenced by economic data, central bank policies, and commodity trends, particularly crude oil prices due to Canada’s oil-exporting status. Let’s explore some of the latest fundamental factors driving this pair:
1. U.S. Dollar Strength
– The U.S. Dollar Index (DXY) continues to find support around the 106 mark as of late September 2025, maintaining a firm stance amid rising Treasury yields.
– Federal Reserve officials, including Chair Jerome Powell, have hinted at the possibility of one more rate hike before the end of 2025, citing inflation stickiness and strong labor market data.
– U.S. GDP growth for Q2 2025 was revised up to an annualized 2.6%, further supporting the dollar.
2. Canadian Economic Weakness
– Canada’s GDP growth remains comparatively
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