USD/CAD Tests 50-SMA as Pair Posts Second Consecutive Weekly Gain

USD/CAD is turning higher for a second straight week, now testing the critical 50-day simple moving average (50-SMA), a key technical level that could determine near-term directional momentum. The pair's recovery suggests renewed US dollar strength against the Canadian dollar, potentially driven by shifting interest rate expectations and softening crude oil prices weighing on the commodity-linked loonie. The 50-SMA serves as an important resistance level — a sustained break above it could open the door for further USD/CAD upside toward previous swing highs, while rejection at this level may signal a resumption of the broader downtrend. Canadian economic fundamentals, including the Bank of Canada's rate trajectory and employment data, remain key factors for CAD valuation. Traders should also monitor WTI crude oil movements, given the strong correlation between oil prices and CAD strength. The two-week bullish streak indicates growing momentum for USD bulls, but confirmation above the 50-SMA is essential before committing to longer-term long positions.