USD/CAD Eyes Resistance at $1.42 Amid Overbought Levels

The USD/CAD exchange rate has been pushing higher, nearing resistance around $1.42.

This area of resistance has proven strong since 2025, initially serving as both support and resistance before acting primarily as a barrier to upward momentum.

Despite reaching overbought levels with the relative strength index above 70 and touching its upper Bollinger Band, USD/CAD may first experience consolidation or a pullback to its 10-day exponential moving average before making another move towards its highs in 2024.

If it can break through this resistance at $1.42, USD/CAD could potentially return to $1.445, a rate not seen since late 2024 and early 2025.