USDCAD finds support at 1.3650

USDCAD has halted its decline and is attempting to reverse higher after receiving buyer support near 1.3650. Details — in our analysis for 29 December 2025.

USDCAD forecast: key takeaways

• Market focus: Canada’s GDP increased by 0.1% in November
• Current trend: an upward correction is observed
• USDCAD forecast for 29 December 2025: 1.3600 and 1.3730

Fundamental analysis

The preliminary GDP estimate from Statistics Canada, released last week, showed growth of 0.1% in November. This marked a moderate recovery following a sharp contraction in October, providing support for the Canadian dollar.

The Bank of Canada’s recent decision kept the interest rate unchanged at 2.25% and emphasized a data-dependent pause rather than further rate cuts. This stance maintained relatively tight short-term policy conditions, supporting Canadian bond yields and the national currency.

USDCAD technical analysis

On the H1 chart, USDCAD is showing a moderate upward correction within the broader downtrend. Prices rebounded from the daily support at 1.3650, forming a local bullish reversal, with buyers attempting to take the initiative.

In the short-term USDCAD price forecast, if sellers manage to keep prices below 1.3730, the broader decline may resume. If, however, bulls gain control and push the price above 1.3730, the upward correction may extend toward the 1.3800 area.

Summary

USDCAD has reversed higher from support at 1.3650. However, the daily trend remains bearish, meaning that after the correction is completed, further downside movement remains possible.

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