Last Updated on July 28, 2026 by Deon
The USD/CAD pair was pretty close to the 1.4110 area on Tuesday. This happened because the Canadian dollar was having a time against the U.S. Dollar. The main reason for this is that crude oil prices have been going down. This has reduced support for the dollar. People who invest are also waiting to see what the Federal Reserve decides about interest rates. This is keeping the U.S. Dollar strong.
Why Lower Oil Prices Hurt the Canadian Dollar
Canada is an exporter of crude oil. So when oil prices change, it really affects the dollar. If oil prices go down, the money Canada makes from exports usually goes down too. This reduces demand for the dollar.
Lately people have been feeling better about things because they think tensions between countries are easing. This has made people less worried about oil supply problems. As a result crude oil prices have gone down a lot. This has weakened the dollar and helped the USD/CAD pair stay high.
US Dollar Finds Support Ahead of the Fed
While oil prices are hurting the dollar, the U.S. dollar is still getting support. This is because traders are getting ready for the Federal Reserves announcement about policy.
Even though most people think the Fed will not change interest rates, investors are listening carefully to what Chair Kevin Warsh says. They want to know what might happen with policy in the future. If it seems like interest rates might stay high for longer, this could help the U.S. dollar more.
Technical Analysis: USD/CAD Outlook
From one perspective, the USD/CAD pair is still in a trend. This is true even though it has been a little weak during the day.
Here are some important levels to watch:
1. 1.4100
2. 1.4050
3. 1.4025
Here are some key resistance levels:
1. 1.4150
2. 1.4200
3. 1.4250
As long as the USD/CAD pair stays above 1.4100, buyers might keep trying to reach higher levels. If it breaks below 1.4050, it could lead to a bigger correction.
What Could Move USD/CAD Next?
There are big events that could affect the USD/CAD pair in the coming days. These include the Federal Reserve’s decision on interest rates and what they say about policy. We will also be watching economic data, like GDP figures. Of course we will be keeping an eye on crude oil prices and what is happening in the world.
These things will probably decide whether the USD/CAD pair keeps going up or starts to go
The Canadian dollar is still having a time because crude oil prices are weak. At the time, people kept favoring the U.S. dollar ahead of the Federal Reserves announcement. Unless crude oil prices go up or the Fed says something surprising, the USD/CAD pair will probably stay strong for a while.
