USDCAD has dropped below the 1.40 level after previously testing the 1.47 resistance during peak tariff fears. With the dollar index weakening and trade-related concerns easing, USDCAD has pulled back to a key trendline on the daily timeframe.

Since 2015, USDCAD has traded within a broad range between 1.20 and 1.47. After testing the 1.20 support in mid-2021, the pair entered a steady uptrend, which is now being tested once again. In addition to the rising trendline, there is also a horizontal support zone at 1.37–1.3880—previously a key resistance area during the 2023–2025 period. This convergence of trendline and horizontal support could provide strong support.

As long as the trendline holds, this test may offer a medium-term buying opportunity with a well-defined support area. Potential upside targets include 1.4020 and 1.4175, with a possible medium-term push back toward 1.47 if broader conditions align.