USD/CAD plunges to 3-month lows on commodity strength and CAD rally

USD/CAD has tumbled to its lowest level in three months, reflecting significant Canadian dollar strength amid supportive commodity prices and shifting market dynamics. The pair's sharp decline accelerated through key technical support levels, triggering stop-loss orders and momentum-based selling. Oil prices remain elevated, providing fundamental support for the commodity-linked Canadian currency. The move also reflects broader US dollar weakness, with traders reassessing Fed rate expectations following recent economic data. Technical indicators show USD/CAD approaching oversold conditions, though momentum remains firmly bearish. The 3-month low marks a significant psychological level, with potential for either a technical bounce or continued decline depending on commodity trends and upcoming economic releases. Traders are closely monitoring oil market developments and Canadian economic data for signs of whether this CAD strength can sustain or if a reversal might emerge.