• USD/CAD rises above the 200-day EMA but struggles to crack 1.3400.
• Upside risks for the USD/CAD lie above 1.3400, which can trigger a rally toward 1.3500.
• USD/CAD failure to crack 1.3400 could pave the way for further losses.

The USD/CAD advances after bottoming last Friday at around 1.3300; the pair bounces off and hovers nearby the 1.3400 figure after reaching a high of 1.3420. At the time of writing, the USD/CAD is trading at 1.3395 and is gaining 0.31%.

The USD/CAD dove to new 8-week lows at 1.3300, spurring an increase in the greenback’s demand, even though the Bank of Canada (BoC), in its latest monetary policy, announced the BoC Governing Council discussed raising rates. Nevertheless, current expectations for additional Fed tightening bolstered the US Dollar.