USD/CAD Pair Hits Major Resistance as Interest Rates Remain in Focus

The USD/CAD pair has continued its upward trend as interest rates in the US remain higher than in Canada. The Canadian economy is lagging behind the US, and the upcoming jobs report on Friday will provide a clearer picture of the US economy's performance.

According to recent data, the PCE was slightly lower and growth was slightly higher, indicating that the US may outperform the Canadian economy. However, some market analysts believe that the pair is overbought and due for a short-term pullback.

A major resistance barrier is currently in focus, and breaking above it would lead to a massive consolidation up to the 1.45 level. However, this may be challenging as the easy money has already been made, and the market may be difficult to short at present.

The Canadian dollar's lack of backing from oil markets against the US dollar is also a significant factor in the pair's performance. The US produces 14 million barrels a day, giving it an advantage over Canada in this regard.