USD/CAD weekly: loonie tests 1.40 resistance, 2026-06-08
Where USD/CAD closed the week
The pair opened Monday at 1.39448 and closed Friday at 1.39788, gaining 340 pips or 0.24%. Wednesday saw the week's high at 1.40234, while the low came midweek at 1.38985. Four of five sessions closed higher, with volume peaking at 103,559 contracts on Thursday.
What moved price
Dollar strength dominated the narrative this week. The PBOC's surprisingly high USD/CNY reference rate setting signaled continued yuan weakness, which supported broad dollar buying across G10 pairs including USD/CAD.
The push through 1.40 on Wednesday marked the first test of that psychological level since early May. Though the pair pulled back from the highs, closing the week near 1.3980 keeps the upward pressure intact.
The week ahead
No major Canadian or US economic releases are scheduled in the upcoming week according to the data bundle. This leaves USD/CAD vulnerable to broader dollar flows and any surprise central bank commentary. Without scheduled catalysts, expect ranges to compress around current levels.
Positioning
LHFX client sentiment shows 50.9% of positions are long USD/CAD, with 49.1% short. This near-balanced positioning suggests no clear consensus among retail traders. When sentiment sits this close to neutral, price often respects technical levels more cleanly.
Levels to watch
If USD/CAD holds above 1.3950, the Wednesday high at 1.40234 becomes the obvious target. A break below Wednesday's low at 1.38985 would shift momentum back to sellers, opening a test of 1.3850. The weekly close at 1.39788 now acts as the immediate pivot. Trade USD/CAD and other major pairs with LHFX's competitive spreads by opening your account today.
Byline: LHFX Research
Risk disclaimer. CFD trading involves substantial risk and is not suitable for every investor. Leverage works both ways and can amplify losses beyond your initial deposit. The analysis above is general market commentary and does not constitute investment advice or a recommendation to buy or sell any instrument. LHFX is regulated by the FSC Mauritius and the FSCA in South Africa.