USD/CAD Rebound Stalls Near 1.3700 as Bulls Lose Momentum

USD/CAD has staged a recovery but is struggling to sustain gains just below the 1.3700 level, suggesting the rebound may be losing steam. The pair has bounced from recent lows as broad US dollar sentiment stabilizes amid ongoing tariff-related uncertainty, which directly impacts the Canadian economy given its heavy trade dependence on the United States. The Canadian dollar remains sensitive to developments in US trade policy, with any escalation likely to weigh on CAD given Canada's export-driven economic structure. Oil prices, a key driver for the loonie, continue to add a layer of complexity to the pair's outlook. From a technical perspective, the 1.3700 handle represents a significant resistance zone, and failure to break above this level could invite renewed selling pressure. Support is seen near recent lows below 1.3650. Traders should monitor upcoming trade policy announcements and crude oil price movements for directional cues, as the pair appears caught between competing fundamental forces.