USD/CAD Pauses at 1.3650 as Treasury Yields Retreat
USD/CAD consolidated around 1.3650 as a sharp decline in US Treasury yields halted the dollar's recent rally against the Canadian currency. The 10-year yield dropped significantly in the previous session, reducing the dollar's yield advantage and prompting profit-taking in USD/CAD longs. The pair retreated from recent highs near 1.3700, finding support at the 50-day moving average around 1.3640. Canadian dollar strength was also supported by stable oil prices above $75/barrel, benefiting the commodity-linked currency. Technical indicators suggest the pair entered overbought territory during the recent rally, warranting a consolidation phase. Immediate resistance stands at 1.3680, while support lies at 1.3620. The near-term direction will likely depend on US yield movements and oil price dynamics. A sustained break below 1.3640 could signal further downside toward 1.3600, while a recovery in yields might reignite USD/CAD buying interest.
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