USDCAD hits new three-week low amid weaker demand for dollar

As of April 17, 2026, USDCAD remains in a steady downtrend. The pair is currently hovering around 1.3700, setting a new three-week low for the first time since March 23. Sellers are getting stronger amid weakening demand for the dollar as a safe-haven asset.

The Relative Strength Index (RSI) is at 34—below the 50 threshold and dangerously close to oversold territory—confirming that bears are in the driver’s seat. Selling pressure is mounting, though further downside appears limited. A short-term consolidation to relieve technical stress is likely in the near future.

Bollinger Bands are singing the same pessimistic tune. Prices have touched the channel’s lower boundary. Meanwhile, the lines themselves are widening, signaling high volatility and bearish momentum. The middle band, sitting well above current levels, acts as the nearest dynamic resistance and a potential springboard for a rebound.

The Average Directional Index (ADX) is another witness to the decline, hovering near 28 and pointing to a strong impulse. At the same time, the DI- line is firmly above the DI+ one, indicating that bears are in control of the market and there are no signs of a reversal in the near term.

On the fundamental front, USDCAD remains under pressure due to lackluster demand for the dollar amid a ceasefire in Lebanon and ongoing peace talks between the United States and Iran. Market expectations regarding the Bank of Canada’s (BoC) monetary policy and the upcoming USMCA review also lend support to the loonie, while mixed US labor statistics limit the greenback’s upside potential.

Take into account the following trading plan:

Sell USDCAD at current levels near 1.3700 in anticipation of further declines. Place Take profit at 1.36320. Set Stop loss at 1.37550.

This forecast remains relevant between April 17 and April 24, 2026.