The USDCAD has moved back into the “Red Box” range (1.4268 – 1.4466), which had contained price action since mid-December. Volatility increased after President Trump took office, initially sending the pair sharply higher (CAD lower) before reversing lower (CAD higher) when tariffs on Canada were enacted and then retracted.
A couple of weeks ago, the pair broke below the 1.4268 – 1.4278 support zone, extending losses to 1.4350 before rebounding. Yesterday, price retested the Red Box low, briefly corrected, but then surged higher, closing back within the range.
Today, bullish momentum continues. What’s next? I outline the key technical levels, targets, and risk-defining areas ahead. Buyers have regained control—but the question remains: Can they hold it?