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RBC Says USD/CAD Moves Higher on Broad USD Gains And Canada's Weak Employment Report

BY MT Newswires | ECONOMIC | 03/13/26 03:57 PM EDT

03:57 PM EDT, 03/13/2026 (MT Newswires) -- A combination of broad-based USD gains and Canada's weak February employment report caused USD/CAD to rally and test a key resistance trendline now at 1.3723 and resistance at 1.3728 today, according to RBC Capital Markets.

The risk is toward further gains in USD/CAD, the bank said in its weekly FX view. The USD's upside momentum is unlikely to fade unless there are clear signs of de-escalation that filter into lower crude oil prices.

A daily close above the trendline at 1.3723 would still keep USD/CAD well within this year's trading range - a move back above 1.3932 would set the stage for a new and higher range in USD/CAD, RBC said.

From a technical perspective, CIBC strategist George Davis said USD/CAD will have to pierce short-term trendline support at 1.3584 to end the current corrective rally and bring this year's lows between 1.3482 and 1.3504 back into view.

Strong resistance has converged between 1.3723 and 1.3728, with a daily close above here ending the broader downtrend that has been in place since November.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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