USDCAD signals upward reversal amid waning selling pressure

As of April 22, 2026, the USDCAD pair is showing clear signs that the downtrend is running on fumes. Yesterday, bears failed to push quotes below 1.36300. As a result, on Tuesday morning, we saw the price holding onto the 1.36530 level, signaling that bulls are ready to seize the initiative.

Let’s take a closer look at the technical side. The Relative Strength Index (RSI) stands at 27, which is within the bottom area of neutral territory. Nevertheless, the indicator’s upward turn after touching its lows reflects a slowdown in the pace of decline and suggests that selling pressure has exhausted itself prematurely.

Bollinger Band analysis confirms the pair’s early reversal. Yesterday’s candlestick pierced through the lower line at 1.36363, but today, USDCAD returned to the channel. This price behavior is a telltale sign of stabilization and a prerequisite for a corrective move in the opposite direction, adding further arguments for a future bounce.

The Average Directional Index (ADX) is at 42, signaling strong momentum. At the same time, the -DI line, which reflects bears’ strength, has just pulled back from recent peaks, while the +DI one has stayed at 5. This precise combination—a rising ADX paired with a falling -DI—adds the final stroke to the picture of a fading downtrend.

Geopolitical tensions remain the key stress factor for the market. On the one hand, elevated oil prices keep supporting the Canadian dollar; on the other, the unresolved conflict in the Middle East continues to bolster demand for the greenback as a safe-haven asset. However, Trump’s extension of the current ceasefire between the United States and Iran has pushed escalation fears on the back burner, capping the pair’s upside potential in the near term.

Consider the following trading strategy:

Buy USDCAD at current levels. Place Take profit 1 at 1.37000 and Take profit 2 at 1.37500. Set Stop loss at 1.36000.

This forecast remains relevant between April 22 and April 29, 2026.