When it comes to Canada, it's not about tariffs or political headlines making the rounds these days.
The real focus is the Canadian Dollar.
With nearly a 10% weighting in the Dollar Index $DXY, CAD is a crucial piece of the broader currency puzzle.
CAD/USD is pressing against a decade-long support zone, hovering around a key level that triggered strong reversals in 2016 and 2020.
What makes this even more significant is CAD’s close correlation with commodities—especially oil and metals—due to Canada’s heavy exposure to natural resources.
Just look at how the Canadian Dollar has historically traded alongside Crude Oil over the past years.
They look almost identical.
They say history doesn’t repeat, but it often rhymes. If CAD/USD rips higher from here and buyers defend support around 0.68, we can expect energy stocks, metals, and related plays to catch a strong bid.
