USD/CAD Extends Three-Day Rally Back to 1.3600 on Dollar Strength

USD/CAD has extended its upward momentum for a third consecutive session, climbing back to the 1.3600 level as the US dollar continues to attract buying interest. The pair's recovery reflects broad-based greenback strength, driven by resilient US economic data and a Federal Reserve that has maintained a relatively hawkish posture compared to other major central banks. Meanwhile, the Canadian dollar has faced headwinds from softening crude oil prices and mixed domestic economic indicators, limiting the loonie's ability to mount a meaningful recovery. The Bank of Canada's policy outlook has also contributed to CAD weakness, with markets pricing in potential rate adjustments amid slower Canadian economic growth. Technically, the 1.3600 handle represents a significant psychological and technical level, and a sustained break above could pave the way toward the next resistance zone near 1.3650-1.3670. Support is seen around 1.3550, where the pair found buyers during the recent pullback. Traders should watch upcoming Canadian employment data and oil price dynamics for directional cues.