USD/CAD Bounces from Key Support as CAD Shows Resilience

USD/CAD has bounced from crucial support levels as the Canadian dollar demonstrates unexpected resilience against its US counterpart. The pair found buying interest at significant technical support, preventing a deeper decline and suggesting potential for near-term consolidation or recovery. The US Dollar Index's broader movements are influencing the pair's dynamics, while CAD strength reflects improving commodity prices and stable Canadian economic fundamentals. Oil price movements continue to play a crucial role in CAD valuation, with recent stability supporting the loonie. Technical indicators suggest the bounce may extend if support holds firm, with immediate resistance targeted at recent highs. However, the sustainability of this move depends on broader USD strength and commodity market trends. Traders are watching for confirmation of whether this represents a genuine reversal or merely a pause in CAD appreciation, with key economic data from both countries likely to provide direction.