1. COT Context – Canadian Dollar (CAD)
Asset Managers: Consistently net short for most of the period, but since January 2025, there’s been a strong recovery—net positions have become progressively less negative. By mid-April, they’re still short, but significantly less so.
Leveraged Money: Also heavily short in December 2024, but showing a clear bullish reversal starting in early 2025, with net positions turning increasingly positive on CAD.
Interpretation: There’s been a clear sentiment shift from bearish to bullish on CAD starting late 2024. This adds downward pressure on USDCAD.
2. COT Context – US Dollar Index (USD)
Asset Managers: Consistently long, but reducing their net exposure since late March 2025.
Leveraged Money: Opposite of CAD – heavily short in December 2024, now recovering, though without strong momentum. Positions are hovering around neutral.
️ Interpretation: While CAD grows stronger, USD shows signs of indecision or profit-taking. This amplifies the bearish bias on USDCAD.
3. Technical Analysis – USDCAD
Current Price: 1.38369, right near a strong demand zone between 1.3700 – 1.3830, which has already been tested multiple times.
The current weekly candle is forming a doji or pin bar, hinting at a potential technical bounce.
Key Resistance: 1.45215 (monthly high).
Key Support: 1.3700. A breakdown below this could trigger a move toward 1.3480.
RSI: Neutral to slightly bearish, no major divergences observed.
🧠 Technical Outlook:
If the 1.3700–1.3830 zone holds, we might see a corrective bounce toward 1.4000–1.4100.
If that zone breaks, expect a bearish continuation toward 1.3580–1.3480.
Trade Summary
Fundamental Bias (COT): Bearish USDCAD → Strong CAD, weakening USD.
Technical Bias: Neutral to bearish, potential for short-term bounce before continuation.
🧭 Trade Plan
Short on pullback toward 1.4000–1.4100 with stop above 1.4150, targeting 1.3600–1.3500.
Breakout trade below 1.3700 → Enter on daily close confirmation, target 1.3480.