USD/CAD Slides as Canadian Dollar Strengthens on Risk-On Sentiment

USD/CAD has declined 0.5% to 1.4250 as the Canadian dollar gains ground amid improving risk sentiment and stable commodity prices. The loonie's strength comes despite broader USD resilience against other majors, suggesting Canada-specific factors are driving the move. Oil prices holding above $71/barrel support the commodity-linked currency, while market positioning suggests traders are reducing long USD/CAD positions accumulated during recent dollar strength. Technical indicators show the pair breaking below the 1.4300 support level, opening potential for further declines toward 1.4200. The 50-day moving average at 1.4180 represents the next significant support zone. Upcoming Canadian inflation data and Bank of Canada communications could provide additional direction. The current momentum favors continued CAD strength, particularly if oil prices remain supportive and risk appetite improves further in global markets.