USD/CAD tests October lows near 1.3580 on broad USD weakness

USD/CAD dropped to 1.3580, matching the May 6 low and approaching levels not seen since October 2024, as the US dollar weakened across the board. The pair has declined 1.2% over the past week, with the Canadian dollar benefiting from stable oil prices above $80/barrel and expectations that the Bank of Canada may pause its rate-cutting cycle. WTI crude's resilience near recent highs continues to support CAD strength, given Canada's significant energy exports. Technical analysis shows USD/CAD testing critical support at 1.3580, with a break below potentially accelerating losses toward 1.3500. Immediate resistance sits at 1.3650, followed by the 20-day moving average at 1.3680. The bearish momentum suggests further downside potential, particularly if oil prices remain elevated and US economic data continues to disappoint market expectations.