USD/CAD nine-day surge puts 50DMA in playU.S. Dollar / Canadian DollarFOREXCOM:USDCADFOREXcomUSD/CAD is enjoying its longest bullish streak since 2017, registering nine consecutive daily gains and breaking above the important 50DMA for the first time since early December. Given this level has repeatedly acted as support and resistance in the recent past, its proximity provides a decent level to build trades around, depending on how near-term price action evolves. Even with the winning streak, the pair is not yet overbought on the daily timeframe on RSI (14), pushing further away from the neutral 50 level. MACD is on the cusp of flipping positive, having already crossed the signal line from below around the turn of the year, providing an overall picture of building bullish strength that favours buying dips over selling into strength despite the negative slope of both the 50 and 200DMAs. Should USD/CAD manage to hold above the 50DMA, longs could be set targeting 1.4000, 1.4080 or the October high of 1.4140, depending on desired risk-reward from the setup. A stop beneath the 50DMA, 1.3900, or 200DMA would offer protection against reversal. Alternatively, should the pair be unable to hold above the 50DMA, the setup could be flipped with shorts established beneath the level with a stop above for protection, targeting either 1.3900, 200DMA, 1.3800, 1.3725 or the December low of 1.3642. Beyond technicals, USD/CAD has shown an increasingly strong relationship with shifts in market pricing for Fed rate cuts this year and moves at the front end of the U.S. interest rate curve, putting this week’s U.S. December consumer price inflation report in focus as a key risk event. Possible announcements surrounding the legality of the Trump Administration’s reciprocal tariffs and the replacement for Jerome Powell as Federal Reserve chair add an extra layer of complexity when assessing potential setups, ensuring risk management should be top of mind for anyone trading USD/CAD this week. Good luck! DS