USD/CAD Traders Eye Key Resistance Ahead of FOMC Minutes

Key Facts

1USD/CAD traders are awaiting a breakout of the 200-day Exponential Moving Average (EMA) near 1.3770.

2Markets are awaiting the release of the FOMC meeting minutes for signals regarding the interest rate path.

USD/CAD traders are awaiting a potential breakout of the 200-day Exponential Moving Average (EMA) near 1.3770. These technical maneuvers come as markets anticipate the release of the FOMC meeting minutes for clearer signals regarding the U.S. interest rate path. According to reports, the pair is currently consolidating as bulls wait for a fundamental catalyst from the Federal Reserve.

This price action coincides with mixed pressures on the Canadian Dollar; recent data showed strength in the Canadian housing sector, with housing starts hitting 279.3k, significantly beating the 240k forecast per market data on May 15, 2026. Meanwhile, the U.S. Dollar remains supported by stable retail sales, which grew 0.5% MoM in May, reinforcing expectations that the Fed may maintain higher rates for longer than its G10 peers.

The USD/CAD pair hovered near 1.3770 (at close May 20, 2026), a level that serves as a critical technical ceiling for sustained upward momentum. Looking ahead, investors will closely monitor the FOMC minutes for any dovish or hawkish tilts, alongside upcoming speeches from Fed officials listed in the economic calendar to determine the pair's medium-term trajectory.