USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish Bias Above $1.43442: Sustained trading above the pivot confirms upside potential.
- Resistance Levels: Immediate resistance at $1.44631, with further barriers at $1.45272 and $1.45861.
- Support Levels: Key support at $1.42799, with lower levels at $1.42108 and $1.41342 providing downside protection.
The USD/CAD pair is trading at $1.43825, up 0.03%, as the U.S. Dollar holds steady against the Canadian Dollar. The price hovers just above the pivot point at $1.43442, maintaining a cautiously bullish sentiment.
Immediate resistance is observed at $1.44631, followed by stronger hurdles at $1.45272 and $1.45861. On the downside, support lies at $1.42799, with additional levels at $1.42108 and $1.41342, marking critical thresholds for a potential retracement.
The 50-day EMA at $1.43861 provides dynamic resistance, reinforcing the importance of sustained momentum above the pivot point.
A successful break above $1.43442 could set the stage for further gains, targeting the immediate resistance zone at $1.44631. Conversely, a failure to hold above the pivot could lead to selling pressure, testing the $1.42799 support level.
The RSI indicates neutral to bullish momentum, suggesting a balanced market outlook but with an upside bias. Traders should keep an eye on U.S. and Canadian economic data, including oil prices, which heavily influence the Canadian Dollar’s movement.
The overall sentiment remains bullish, but a decisive move above $1.43861 is crucial for validating further gains.
USD/CAD - Trade Ideas
Entry Price – Buy Above 1.43435
Take Profit – 1.44641
Stop Loss – 1.43001
Risk to Reward – 1: 2.7
Profit & Loss Per Standard Lot = +$1206/ -$434
Profit & Loss Per Mini Lot = +$120/ -$43
USD/CAD Price Analysis – Jan 14, 2025
Daily Price Outlook
During the European trading session, the USD/CAD currency pair is trading weakly around 1.4380 during Tuesday’s early European session, pressured by Canadian Dollar (CAD) strength and shifting market sentiment.
Following stronger-than-expected Canadian labor market data for December, traders have adjusted their outlook on the Bank of Canada’s (BoC) rate cut trajectory.
Simultaneously, rising crude oil prices have bolstered the CAD, further weighing on the pair. With the US Producer Price Index (PPI) for December scheduled for release later on Tuesday, market participants await additional cues on the US Dollar (USD) outlook, which could influence the pair’s trajectory.
US Dollar Supported by Strong Economic Data and Hawkish Fed Outlook
On the US front, robust economic data is supporting a hawkish Federal Reserve (Fed) stance, limiting the USD’s downside.
The Bureau of Labor Statistics’ December Nonfarm Payrolls (NFP) report showed an increase of 256,000 jobs, the highest since March, alongside a decline in the Unemployment Rate to 4.1%.
These figures reinforce expectations that the Fed will maintain higher interest rates through much of 2025.
According to the CME FedWatch tool, markets are currently discounting the likelihood of a 25 basis points rate cut at the January 28-29 Federal Open Market Committee (FOMC) meeting, with a probability of just 2.7%.
The USD’s resilience, driven by these factors, prevents a steeper decline in the USD/CAD pair, even as external pressures weigh on the Greenback’s performance.
Canadian Dollar Gains Support from Strong Domestic Data and Rising Oil Prices
The Canadian Dollar finds support from robust domestic data and favorable oil market conditions. Canada’s December labor market report revealed unexpected strength, with higher job creation reducing the likelihood of a BoC interest rate cut in January.
Reuters data indicates that expectations for a January 29 rate cut have dropped to 61%, down from 70% before the labor report’s release.
Moreover, crude oil prices have surged amid expanded US sanctions on Russian oil, providing a further boost to the CAD. As Canada is the largest oil exporter to the US, higher oil prices directly enhance the CAD’s appeal, creating downward pressure on the USD/CAD pair.
This oil-driven momentum underscores the Loonie’s sensitivity to commodity market dynamics, which will likely remain a key driver of the pair in the near term.
USD/CAD – Technical Analysis
The USD/CAD pair is trading at $1.43825, up 0.03%, as the U.S. Dollar holds steady against the Canadian Dollar. The price hovers just above the pivot point at $1.43442, maintaining a cautiously bullish sentiment.
Immediate resistance is observed at $1.44631, followed by stronger hurdles at $1.45272 and $1.45861. On the downside, support lies at $1.42799, with additional levels at $1.42108 and $1.41342, marking critical thresholds for a potential retracement.
The 50-day EMA at $1.43861 provides dynamic resistance, reinforcing the importance of sustained momentum above the pivot point.
A successful break above $1.43442 could set the stage for further gains, targeting the immediate resistance zone at $1.44631. Conversely, a failure to hold above the pivot could lead to selling pressure, testing the $1.42799 support level.
The RSI indicates neutral to bullish momentum, suggesting a balanced market outlook but with an upside bias. Traders should keep an eye on U.S. and Canadian economic data, including oil prices, which heavily influence the Canadian Dollar’s movement.
The overall sentiment remains bullish, but a decisive move above $1.43861 is crucial for validating further gains.
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USD/CAD Price Analysis – Jan 07, 2025
Daily Price Outlook
During the European trading session, the USD/CAD pair slipped lower, hovering around the 1.4306 level and reaching a low of 1.4302.
The Canadian Dollar (CAD) found some support following the news that Canadian Prime Minister Justin Trudeau would announce his plans to step down, with the expectation that it would happen before an emergency meeting of Liberal legislators on Wednesday.
Meanwhile, the US Dollar (USD) managed to hold steady, partly due to President-elect Donald Trump's comments, in which he stated that his tariff policy would remain unchanged. This helped keep the USD/CAD pair higher for the time being.
Impact of Retaliatory Tariffs, Oil Prices, and US Economic Data on the USD/CAD Pair
On the CAD front, the Canadian media outlet “The Globe and Mail” reported that Canada’s federal government might soon release a list of American goods that would face retaliatory tariffs.
This move comes in response to the potential tariffs that incoming US President Donald Trump may impose on Canadian products. This has raised concerns about the trade relationship between the two countries.
At the same time, lower crude oil prices could weigh on the Canadian Dollar, as Canada is the largest oil exporter to the US. Oil prices have been falling, with West Texas Intermediate (WTI) oil trading around $72.90 per barrel, continuing a downward trend for the second day.
However, oil prices might find some support due to a decline in OPEC's oil production in December, particularly after the UAE's efforts to cut supply and stabilize global oil markets.
Looking ahead, traders are closely watching Canada’s Ivey Purchasing Managers Index (PMI) data, as well as the US ISM Services PMI, which will be released on Tuesday. Attention will also turn to the Federal Reserve's December meeting minutes on Wednesday.
Meanwhile, US business activity showed a strong increase in December, with the S&P Global US Services PMI reaching a 33-month high. President-elect Trump’s comments about his tariff policy could offer some support for the US Dollar in the coming days.
Therefore, the potential release of retaliatory tariffs by Canada and falling oil prices could pressure the Canadian Dollar, while strong US business activity and Trump's tariff policy comments may support the US Dollar. This could lead to further strength in the USD/CAD pair.
US Economic Growth and Trump’s Tariff Stance Support the US Dollar, Impacting USD/CAD Pair
On the US front, the S&P Global US Services PMI Business Activity Index rose for the second month in a row in December, reaching a 33-month high of 56.8, up from 56.1 in November.
This indicates that business activity in the services sector continued to grow at a strong pace. In addition, the S&P Global US Composite PMI Output Index also increased to 55.4 in December, up from 54.9 in November, showing a broad-based improvement in overall economic activity.
This rise in business activity marks the fastest expansion since April 2022, reflecting a healthy economic environment in the US.
The increase in both the services and composite PMI indexes signals that the US economy is continuing to recover and expand, which could support the US Dollar in the near term.
Furthermore, President-elect Donald Trump’s comments on his tariff policy added to the US Dollar's strength.
Trump confirmed that he would not scale back his tariff plan and dismissed a report suggesting that his team was considering limiting the tariffs to only cover specific critical imports.
His stance on tariffs could lead to continued uncertainty and potential market reactions, providing support for the US Dollar.
Therefore, the positive US economic data, along with President-elect Trump's firm stance on tariffs, could strengthen the US Dollar.
This may put upward pressure on the USD/CAD pair, as the US Dollar gains support from economic growth and tariff policy certainty.
USD/CAD – Technical Analysis
USD/CAD is trading at $1.43112, down 0.12% on the day, as bearish momentum dominates. The pair is consolidating below the pivot point at $1.43454 on the 4-hour chart, suggesting potential for further downside.
The Relative Strength Index (RSI) is at 39, indicating weak momentum and room for additional selling pressure. The 50-day Exponential Moving Average (EMA) at $1.43855 acts as a key resistance level, reinforcing the bearish sentiment.
Immediate support is observed at $1.42799, with additional levels at $1.42108 and $1.41342, aligning with prior price action and technical indicators.
A break below $1.42799 could accelerate the downside move, targeting $1.42108. On the upside, resistance stands at $1.44587, followed by $1.45428 and $1.46163.
To negate the bearish outlook, the pair would need to break and sustain above the pivot point and the 50 EMA at $1.43454 and $1.43855, respectively.
The technical structure indicates that sellers maintain control, with the descending price action below the pivot and EMA levels affirming bearish dominance.
Traders should monitor the $1.43454 pivot closely for a potential reversal or continuation signal, with key support and resistance levels dictating short-term moves.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Immediate resistance at $1.44587; further levels at $1.45428 and $1.46163.
- Support Zones: Key support at $1.42799, with additional levels at $1.42108 and $1.41342.
- Momentum Indicators: RSI at 39 signals bearish momentum; price below the 50 EMA supports a negative outlook.
USD/CAD is trading at $1.43112, down 0.12% on the day, as bearish momentum dominates. The pair is consolidating below the pivot point at $1.43454 on the 4-hour chart, suggesting potential for further downside.
The Relative Strength Index (RSI) is at 39, indicating weak momentum and room for additional selling pressure. The 50-day Exponential Moving Average (EMA) at $1.43855 acts as a key resistance level, reinforcing the bearish sentiment.
Immediate support is observed at $1.42799, with additional levels at $1.42108 and $1.41342, aligning with prior price action and technical indicators.
A break below $1.42799 could accelerate the downside move, targeting $1.42108. On the upside, resistance stands at $1.44587, followed by $1.45428 and $1.46163.
To negate the bearish outlook, the pair would need to break and sustain above the pivot point and the 50 EMA at $1.43454 and $1.43855, respectively.
The technical structure indicates that sellers maintain control, with the descending price action below the pivot and EMA levels affirming bearish dominance.
Traders should monitor the $1.43454 pivot closely for a potential reversal or continuation signal, with key support and resistance levels dictating short-term moves.
USD/CAD - Trade Ideas
Entry Price – Sell Below 1.43449
Take Profit – 1.42478
Stop Loss – 1.44070
Risk to Reward – 1: 1.5
Profit & Loss Per Standard Lot = +$971/ -$621
Profit & Loss Per Mini Lot = +$97/ -$62
USD/CAD Price Analysis – Dec 31, 2024
Daily Price Outlook
The Canadian dollar (CAD) strengthened slightly against the U.S. dollar (USD) on Monday as the greenback experienced modest losses during light holiday trading.
The USD/CAD pair is trading near 1.4362, reflecting the broader market’s reaction to declining U.S. Treasury yields and shifting investor expectations for Federal Reserve policies in 2025.
While the U.S. dollar has performed strongly throughout 2024, rising by 6.6% on the Dollar Index (DXY), recent geopolitical uncertainties and Canadian resilience have capped USD/CAD’s upward momentum.
The U.S. Federal Reserve’s surprise move to reduce its projected interest rate cuts for 2025—from 100 to 50 basis points—has bolstered the dollar against most global currencies.
However, Canada’s robust economic data, including strong job numbers and steady oil prices, provided support for the CAD, keeping USD/CAD fluctuations limited.
Federal Reserve Policies and Trump Administration Outlook
The Federal Reserve’s cautious stance on rate cuts reflects ongoing concerns over persistent inflation. U.S. Treasury yields dropped by roughly 2% this week, with the 2-year yield settling at 4.24% and the 10-year yield at 4.53%.
Meanwhile, President-elect Donald Trump’s policy agenda—centered on tariffs, tighter immigration rules, and increased fiscal spending—has added further uncertainty to global markets, driving USD gains.
Traders are also eyeing upcoming economic reports, including U.S. unemployment claims and Canadian manufacturing PMI data, which could influence USD/CAD’s trajectory. A favorable outcome for Canada could strengthen the CAD further, while disappointing data may bolster the greenback.
Geopolitical Risks and Canadian Dollar Stability
The Canadian dollar has weathered external pressures better than many emerging-market currencies, which remain vulnerable to the stark interest rate disparity between the U.S. and other economies. Meanwhile, geopolitical tensions, such as the ongoing Russia-Ukraine conflict, have weighed on global risk sentiment, supporting the safe-haven dollar.
USD/CAD – Technical Analysis
The USD/CAD pair is trading at $1.43622, up 0.05%, as it navigates a cautious upward trajectory. The pivot point at $1.44133 serves as a critical marker for directional momentum.
Immediate resistance is positioned at $1.44365, with higher targets at $1.44970 and $1.45508, representing potential barriers for sustained bullish momentum. On the downside, support levels lie at $1.43044, followed by $1.42583 and $1.42108, essential for preventing a deeper pullback.
The pair's price action remains underpinned by its proximity to the 50 EMA at $1.43874, which signals near-term consolidation.
The Relative Strength Index (RSI) at 43 reflects mildly bearish conditions, indicating that the pair is neither oversold nor poised for immediate upside strength.
A break above the pivot point at $1.44133 could validate bullish sentiment, targeting the next resistance at $1.44365. Conversely, slipping below the immediate support at $1.43044 may lead to a decline toward $1.42583.
Economic sentiment surrounding oil prices continues to influence the Canadian dollar, adding volatility to the pair.
Thin year-end liquidity and trader caution could magnify short-term movements. Watch for a decisive break above or below the pivot point to determine the pair's next directional move.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Immediate resistance at $1.44365, with key targets at $1.44970 and $1.45508 for bullish continuation.
- Support Levels: Immediate support at $1.43044, with additional layers at $1.42583 and $1.42108 to cap declines.
- Momentum Indicators: RSI at 43 shows mild bearish momentum; a move above the pivot at $1.44133 is critical for bulls.
The USD/CAD pair is trading at $1.43622, up 0.05%, as it navigates a cautious upward trajectory. The pivot point at $1.44133 serves as a critical marker for directional momentum.
Immediate resistance is positioned at $1.44365, with higher targets at $1.44970 and $1.45508, representing potential barriers for sustained bullish momentum. On the downside, support levels lie at $1.43044, followed by $1.42583 and $1.42108, essential for preventing a deeper pullback.
The pair's price action remains underpinned by its proximity to the 50 EMA at $1.43874, which signals near-term consolidation.
The Relative Strength Index (RSI) at 43 reflects mildly bearish conditions, indicating that the pair is neither oversold nor poised for immediate upside strength.
A break above the pivot point at $1.44133 could validate bullish sentiment, targeting the next resistance at $1.44365. Conversely, slipping below the immediate support at $1.43044 may lead to a decline toward $1.42583.
Economic sentiment surrounding oil prices continues to influence the Canadian dollar, adding volatility to the pair.
Thin year-end liquidity and trader caution could magnify short-term movements. Watch for a decisive break above or below the pivot point to determine the pair's next directional move.
USD/CAD - Trade Ideas
Entry Price – Buy Above 1.43403
Take Profit – 1.44133
Stop Loss – 1.43044
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$730/ -$359
Profit & Loss Per Mini Lot = +$73/ -$35
USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- USD/CAD remains near $1.43750, testing key pivot at $1.43872.
- Immediate resistance at $1.44635 and support at $1.43228.
- RSI at 47 indicates neutral momentum; price action will dictate future direction.
The USD/CAD pair remains under modest downward pressure, trading at $1.43750, a slight decrease of 0.01%.
The key pivot point for this pair is at $1.43872, which will be critical in determining the next move. Immediate resistance is located at $1.44635, with subsequent resistance levels at $1.45197 and $1.45741.
On the downside, immediate support is found at $1.43228, followed by $1.42559 and $1.41957.
The 50-day Exponential Moving Average (EMA) is at $1.43833, very close to the current price, signaling a consolidation phase.
The Relative Strength Index (RSI) at 47 suggests neutral market sentiment, with neither bulls nor bears having a clear advantage.
A sustained break above $1.43872 could push the price toward higher resistance levels, whereas a failure to hold above immediate support at $1.43228 may lead to further declines towards the next key support at $1.42559.
USD/CAD - Trade Ideas
Entry Price – Sell Limit 1.43869
Take Profit – 1.43210
Stop Loss – 1.44354
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$659/ -$485
Profit & Loss Per Mini Lot = +$65/ -$48
USD/CAD Price Analysis – Dec 24, 2024
Daily Price Outlook
During the European trading session on Tuesday, the USD/CAD pair saw some upward movement, climbing to an intraday high of 1.4400 after starting around 1.4396.
This increase can mainly be traced back to the US dollar, which gained momentum following comments from Federal Reserve policymakers suggesting fewer interest rate cuts next year due to a slowdown in disinflation.
However, the situation isn't all straightforward. Soft US PCE data have eased some of the inflation concerns, leaving a mixed outlook for the economy.
On the other hand, Canada’s economy showed stronger-than-expected GDP growth, while the Raw Material Price Index unexpectedly dropped, which could lend some support to the Canadian dollar. This positive economic data might help the CAD, potentially leading to a weaker USD/CAD pair in the short term.
US Economic Data and Consumer Confidence Point to Mixed Outlook for the Economy
On the US front, the broad-based US dollar saw support as Federal Reserve officials suggested there might be fewer interest rate cuts next year. This was due to a slowdown in the disinflation process, which keeps inflation concerns lingering.
Hon for October, which showed a 0.8% increase, much higher than the initial 0.2% reported. This data reflects some challenges in the US economy and could affect future economic expectations.
Meanwhile, consumer confidence also took a hit. The US Consumer Confidence Index fell by 8.1 points in December, dropping to 104.7. This decline shows that the recent rise in confidence was not sustained, with many households concerned about President-elect Trump's economic policies.
Nearly half of those surveyed feared that tariffs could raise the cost of living. These worries, along with the Federal Reserve's cautious stance on interest rate cuts in 2025 due to inflation, contribute to a more uncertain outlook for the US economy.
Canada's Mixed Economic Data Signals Potential Slowdown Ahead
On the CAD front, Canada’s GDP rose by 0.3% in October, which was better than the expected 0.1% decline. This unexpected growth shows some strength in the Canadian economy.
However, the Raw Material Price Index dropped by 0.5% in November, a sharp fall from October's 4.0% increase. This was also much lower than the anticipated 0.6% rise.
Looking ahead, Canada’s economy is expected to shrink slightly by 0.1% in November. This would mark the first monthly contraction of the year, which aligns with the Bank of Canada’s recent warnings about slower growth.
The central bank had also revised its growth forecasts downwards, reflecting concerns about weaker economic conditions.
These mixed data points suggest that while Canada’s economy showed some positive signs, there are still challenges ahead, and growth may slow in the coming months.
USD/CAD – Technical Analysis
The USD/CAD pair remains under modest downward pressure, trading at $1.43750, a slight decrease of 0.01%.
The key pivot point for this pair is at $1.43872, which will be critical in determining the next move. Immediate resistance is located at $1.44635, with subsequent resistance levels at $1.45197 and $1.45741.
On the downside, immediate support is found at $1.43228, followed by $1.42559 and $1.41957.
The 50-day Exponential Moving Average (EMA) is at $1.43833, very close to the current price, signaling a consolidation phase.
The Relative Strength Index (RSI) at 47 suggests neutral market sentiment, with neither bulls nor bears having a clear advantage.
A sustained break above $1.43872 could push the price toward higher resistance levels, whereas a failure to hold above immediate support at $1.43228 may lead to further declines towards the next key support at $1.42559.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- USD/CAD trades above the pivot point at $1.42549, signaling bullish strength.
- RSI at 68 reflects strong buying momentum, nearing overbought conditions.
- Entry strategy: Buy Limit $1.42552, Take Profit $1.42928, Stop Loss $1.42270.
USD/CAD is trading at $1.42708, up 0.19%, maintaining its bullish momentum as buyers push prices above key levels.
On the 4-hour chart, the pair trades above the pivot point at $1.42549, signaling continued upside potential. Immediate resistance stands at $1.42923, with a breakout opening the path toward the next key levels at $1.43147 and $1.43365.
The 50 EMA, currently at $1.42065, serves as strong support, reinforcing bullish sentiment. A retest of the pivot point near $1.42549 could attract fresh buyers, as the uptrend remains intact. On the downside, immediate support rests at $1.42243, with further levels at $1.41986 and $1.41689 offering strong downside protection.
The Relative Strength Index (RSI) stands at 68, hovering near overbought territory but still signaling strong buying pressure. This suggests that USD/CAD could see further upside before any significant pullback.
Technical indicators, including price action above the 50 EMA and the pivot point, confirm the bullish outlook. Traders are closely watching for a decisive move above $1.42923, which could extend the rally to higher resistance levels.
USD/CAD - Trade Ideas
Entry Price – Buy Limit 1.42552
Take Profit – 1.42928
Stop Loss – 1.42270
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$376/ -$282
Profit & Loss Per Mini Lot = +$37/ -$28
USD/CAD Price Analysis – Dec 17, 2024
Daily Price Outlook
During the European trading session, the USD/CAD currency pair continued its upward trend, staying strong around the 1.4280 level and even reaching an intra-day high of 1.4294.
The reason for this rise can be attributed to the US Dollar bouncing back from its losses in the previous sessions, partly due to higher Treasury yields.
At the time, the US Dollar Index (DXY), which tracks the USD against six major currencies, was holding steady near the 107.00 mark. US Treasury bond yields were also higher, with the 2-year at 4.26% and the 10-year at 4.41%.
On the other hand, the Canadian Dollar (CAD) struggled to maintain its ground due to dovish comments from Bank of Canada (BoC) Governor Tiff Macklem.
Speaking on Monday, Macklem mentioned that the BoC is preparing for an uncertain future with increased vulnerability to economic shocks.
He also noted that the central bank would assess the need for further rate cuts cautiously, taking a more gradual approach to monetary policy, depending on how the economy evolves. This outlook has left the CAD under pressure, contributing to USD/CAD's bullish momentum.
Challenges for the Canadian Dollar Amid Political Uncertainty and Economic Concerns
As we mentioned, the Canadian Dollar (CAD) has been facing challenges recently. In addition to the Bank of Canada’s (BoC) dovish stance, there are political issues weighing on the currency.
Prime Minister Justin Trudeau is facing pressure to resign after Finance Minister Chrystia Freeland announced on Monday that she is stepping down from the Cabinet. This political uncertainty has added to the CAD's struggles, making it harder for the currency to strengthen.
On top of this, the BoC Governor, Tiff Macklem, has made comments that suggest the central bank is preparing for a more uncertain future. Traders will be closely watching Canada’s November Consumer Price Index (CPI) inflation data, which is due later today.
Moreover, the release of November’s US retail sales data in the North American session could also impact the currency market. With these developments, the CAD faces a challenging environment in the near term.
US Dollar Strengthens Amid Higher Treasury Yields and Strong Economic Data, Focus on Fed's Rate Cut Decision
On the US front, the broad-based US dollar is gaining support as it recovers from losses in the previous two sessions.
This strength is linked to higher Treasury yields, with the US Dollar Index (DXY) trading around 107.00. The yields on US Treasury bonds for both 2-year and 10-year bonds are at 4.26% and 4.41%, respectively.
Recent economic data showing strong growth in the US is also supporting the USD. The S&P Global flash US Services PMI for December jumped to 58.5, its highest in 38 months, and the Composite PMI rose to 56.6, the highest in 33 months. These figures signal solid economic performance, even though the Manufacturing PMI showed a slight decline.
Traders are now focused on the upcoming decision from the US Federal Reserve (Fed), particularly the possibility of an interest rate cut. The market is nearly fully pricing in a quarter-point rate cut at the Fed’s December meeting.
Moving ahead, traders focus is on the Fed's projections for 2025, as this will give more clarity on their future plans. Therefore, the strong US economic data, combined with expectations of a potential rate cut, has raised hopes that the Fed might not be as dovish as previously expected, which is adding support to the USD.
USD/CAD - Trade Ideas
USD/CAD is trading at $1.42708, up 0.19%, maintaining its bullish momentum as buyers push prices above key levels.
On the 4-hour chart, the pair trades above the pivot point at $1.42549, signaling continued upside potential. Immediate resistance stands at $1.42923, with a breakout opening the path toward the next key levels at $1.43147 and $1.43365.
The 50 EMA, currently at $1.42065, serves as strong support, reinforcing bullish sentiment. A retest of the pivot point near $1.42549 could attract fresh buyers, as the uptrend remains intact.
On the downside, immediate support rests at $1.42243, with further levels at $1.41986 and $1.41689 offering strong downside protection.
The Relative Strength Index (RSI) stands at 68, hovering near overbought territory but still signaling strong buying pressure. This suggests that USD/CAD could see further upside before any significant pullback.
Technical indicators, including price action above the 50 EMA and the pivot point, confirm the bullish outlook. Traders are closely watching for a decisive move above $1.42923, which could extend the rally to higher resistance levels.
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