News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
USD/CAD Stays Near Recent Highs Despite Iran Diplomacy Hopes
Traders' Opinions
Summary:
USD/CAD holds around 1.4035 as hopes of reopening the Strait of Hormuz improve risk sentiment. Falling oil prices, however, limit support for the Canadian Dollar.
Buy
CLOSEDUSDCAD
End Time
1.40351
Entry Price
1.42300
TP
1.39000
SL
1.40837 +0.00199 +0.14%
356
Points
Profit
1.39000
SL
1.40707
CLOSING
1.40351
Entry Price
1.42300
TP
The Canadian Dollar is little changed against the US Dollar on Tuesday, with USD/CAD trading around 1.4035 after briefly reaching a one-and-a-half-month high near 1.4050. Attempts to extend the pullback below 1.4030 have so far struggled to attract momentum as improving risk sentiment is offset by weaker crude oil prices.
Markets are responding to fresh signs that tensions surrounding the Strait of Hormuz could ease. Iran has reportedly proposed reopening the crucial shipping route within seven days of the United States lifting its blockade on Iranian ports. Before the conflict, the Strait handled roughly 20% of global oil supply, making any progress toward restoring normal traffic significant for both energy markets and broader investor sentiment.
The development follows comments from US President Donald Trump, who indicated that he would be willing to meet Iranian President Masoud Pezeshkian during the UN General Assembly in New York. Together, the developments have raised hopes that Washington and Tehran could move toward negotiations after months of conflict.
For the Canadian Dollar, however, the improving geopolitical backdrop is producing mixed effects. Reduced Middle East supply fears have contributed to the recent decline in crude oil prices, removing some support from the commodity-sensitive CAD. At the same time, hopes of diplomatic progress have improved broader risk appetite, preventing a more substantial deterioration in the Canadian currency.
This leaves USD/CAD consolidating close to recent highs. The inability to establish a sustained move below 1.4030 suggests Dollar demand remains relatively firm, while weaker oil prices continue to limit the CAD's ability to capitalize fully on the improvement in market sentiment.
For now, 1.4050 remains an important near-term hurdle, while the market's next move could depend heavily on whether the latest diplomatic signals translate into tangible progress toward reopening Hormuz and reducing regional tensions.
Technical Analysis
USD/CAD has staged a strong recovery on the daily chart, climbing from the September lows around 1.3750 to trade near 1.4033. The latest advance has produced a sequence of higher lows and higher highs, shifting short-term momentum firmly back toward buyers.
The pair is now testing a particularly important area around 1.3990–1.4035. This zone previously acted as support during July before the August breakdown and has now become the main obstacle to the current recovery. Price has pushed back into this region, and the ability to establish itself above 1.4030–1.4050 would strengthen the case for another leg higher.
The chart suggests that an initial breakout could be followed by a brief retest of the 1.3990–1.4010 region. Holding this former resistance as support would be an important confirmation that buyers remain in control and would provide a stronger foundation for continuation.
Above current levels, there is relatively limited visible resistance until the major 1.4220–1.4250 supply zone. This area marked the June peak and represents the principal upside objective. A sustained break through 1.4050 would therefore expose 1.4100 initially before attention shifts toward the larger 1.4230 region.
On the downside, failure to hold above 1.3990 would delay the breakout and could trigger a deeper correction. The next major demand area sits around 1.3735–1.3760, which has repeatedly attracted buyers and formed the base of the latest rally.
Overall, the daily structure favors a breakout, retest and bullish continuation scenario. As long as USD/CAD maintains its position around the 1.4000 region, the recovery remains positioned for an eventual extension toward 1.4220–1.4250.
TRADE RECOMMENDATION
BUY USD/CAD
ENTRY PRICE: 1.4035
STOP LOSS: 1.3900
TAKE PROFIT: 1.4230
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.