USD/CAD rebounds to 1.3970; bulls target 1.4080 resistance

USD/CAD has staged a strong rebound, climbing 0.5% to 1.3970 as the Canadian dollar weakened on declining oil prices and dovish Bank of Canada expectations. WTI crude fell 2.1% to $71.20 per barrel, pressuring the commodity-linked loonie. Technical momentum has turned bullish after the pair bounced from support at 1.3910, with the RSI rising above 50 and MACD showing a bullish crossover. The next resistance target sits at 1.4080, the October high, with intermediate resistance at 1.4020. Canadian inflation data due next week could provide further directional catalyst, with expectations for a continued cooling to 1.9% year-over-year. The BoC has already cut rates by 75 basis points this cycle and markets price in another 25bp reduction in December. A sustained break above 1.4080 would open the path toward 1.4150, the year-to-date high.