The USD/CAD pair is experiencing a bullish trend, with traders eagerly awaiting the FOMC Minutes for further momentum. The US Dollar's strength is supported by geopolitical uncertainties and rising interest rate hike expectations from the US Federal Reserve. A modest pullback in Crude Oil prices and softer-than-expected Canadian consumer inflation figures are also contributing factors. From a technical perspective, the pair has found acceptance above the 50% Fibonacci retracement level of the March-May downfall, with bulls targeting the 200-day Exponential Moving Average (EMA) resistance. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) line suggest improving bullish momentum. However, the pair needs to clear the 200-EMA hurdle to unlock a more constructive bias, with potential targets at the 61.8% Fibo. level and the 78.6% retracement. Initial support is located at the 50.0% retracement, with further cushions at the 38.2% and 23.6% retracement levels. A deeper slide toward the 1.3549 anchor cannot be ruled out if the current floor fails. The US Dollar's strength is also evident in its performance against major currencies this week, with the strongest performance against the Australian Dollar. The heat map further highlights the percentage changes of major currencies against each other, providing a comprehensive view of the currency market dynamics.
