USD/CAD Bears Gain Control as BoC Rate Pause Expectations Build

USD/CAD is experiencing a bearish reversal as market participants increasingly price in a Bank of Canada rate pause at the upcoming policy meeting. The Canadian dollar has strengthened against the greenback, with the pair retreating from recent highs near 1.4100. Growing expectations that the BoC will hold rates steady after aggressive cuts this year are supporting CAD strength. Oil price stability above $68 per barrel provides additional support for the commodity-linked currency. Technical analysis reveals a clear bearish reversal pattern, with the pair breaking below the 50-day moving average at 1.3950. Immediate support lies at 1.3900, with further downside potential toward 1.3850 if bearish momentum continues. The diverging monetary policy outlook between the Fed and BoC could extend this move, particularly if Canadian economic data remains resilient ahead of the policy decision.