USD/CAD rises for third day on geopolitical risks and Fed caution

USD/CAD extended gains for a third consecutive session, climbing 0.4% to 1.3680 as geopolitical tensions and cautious Fed rhetoric supported the greenback against the loonie. The pair's upward momentum accelerated after breaking above the 1.3650 resistance level, with oil price volatility adding pressure on CAD. Despite WTI crude holding near $82, currency traders focused on broader risk dynamics favoring USD strength. The Fed's careful approach to rate cuts contrasts with market expectations for Bank of Canada easing, widening the policy divergence. Technical indicators show bullish momentum building, with immediate resistance at 1.3720 and support at 1.3640. The outlook remains mildly positive for USD/CAD, particularly if geopolitical concerns persist. Canadian dollar weakness may extend if oil prices fail to sustain current levels amid global growth concerns.