USD/CAD Bulls Target 200-Day SMA Near 1.3800 as Momentum Builds

USD/CAD is regaining bullish traction as buyers push the pair toward the key 200-day simple moving average (SMA) near the 1.3800 level. The pair has found renewed support from a combination of US dollar strength and softening Canadian dollar fundamentals, including weaker crude oil prices that continue to weigh on the commodity-linked loonie. Technical indicators suggest building upward momentum, with the pair establishing a series of higher lows on the daily chart. The 200-day SMA at approximately 1.3800 represents a critical resistance zone — a sustained break above this level could open the path toward 1.3850-1.3900. On the downside, immediate support sits near 1.3720, with stronger demand around the 1.3680 area. The broader backdrop of geopolitical uncertainty surrounding Middle East oil flows adds another layer of complexity for CAD traders, as any disruption to crude supply could shift sentiment rapidly. Traders should watch upcoming Canadian retail sales data and US economic releases for directional catalysts in the sessions ahead.