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.
Related News
- GOLD Price Analysis – Dec 31, 2024
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.
Related News
- GOLD Price Analysis – Dec 24, 2024
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.
Related News
- GOLD Price Analysis – Dec 17, 2024
USD/CAD Price Analysis – Dec 10, 2024
Daily Price Outlook
During the European trading session on Tuesday, the USD/CAD currency pair continued its upward momentum, reaching a fresh four-year high of 1.4200.
However, the reason for its upward trend could be linked to the bullish US Dollar, which saw gains ahead of the release of the highly anticipated US Consumer Price Index (CPI) data for November, scheduled for Wednesday.
At the same time, the Canadian Dollar (CAD) faced ongoing pressure, further weakened by investor expectations that the Bank of Canada (BoC) could announce another interest rate cut.
Many are forecasting a 50-basis-point reduction, potentially lowering the rate to 3.25% in the upcoming monetary policy meeting on Wednesday. This outlook for the BoC has kept sentiment around the CAD cautious, as traders brace for the possibility of a more dovish stance from the central bank.
US Dollar Strengthens Ahead of CPI Data, Impacting USD/CAD Outlook
On the US front, the broad-based US Dollar strengthened ahead of the release of the US Consumer Price Index (CPI) data for November, which will be published on Wednesday.
The US Dollar Index (DXY), which tracks the Greenback against six major currencies, hit a two-day high of 106.35. The upcoming inflation data is expected to play a big role in shaping market expectations for the Federal Reserve’s (Fed) interest rate decisions.
Investors are anticipating that the Fed will cut its key borrowing rates by 25 basis points, bringing them to a range of 4.25%-4.50% at its next policy meeting on December 18, according to the CME FedWatch tool.
Economists predict that the annual headline inflation will rise to 2.7% from 2.6% in October, while the core CPI, which excludes food and energy prices, is expected to increase by 3.3%. On a month-to-month basis, headline and core CPI are projected to rise by 0.2% and 0.3%, respectively.
If the inflation data shows signs of slowing down, it could lead to more bets on a dovish Federal Reserve, meaning more rate cuts. On the other hand, if inflation remains high, it could reduce these expectations, keeping the Fed’s rate cut plans in question.
Therefore, the inflation data will likely impact the USD/CAD pair, with signs of slowing inflation boosting expectations for a Fed rate cut, strengthening the USD. Conversely, higher inflation could weaken these expectations, potentially limiting the USD’s strength against the CAD.
Weak Outlook for the Canadian Dollar as Investors Anticipate BoC Rate Cut
On the other hand, the outlook for the Canadian Dollar (CAD) remains weak as investors expect the Bank of Canada (BoC) to cut interest rates by 50 basis points to 3.25% in its upcoming meeting on Wednesday.
This expectation is driven by the current economic conditions in Canada, where the BoC is focusing on maintaining a balanced economy.
The Canadian labor market has shown a significantly lower unemployment rate, and inflation pressures are staying within the BoC's target of 2%. These factors have led to expectations that the BoC might adopt a more dovish stance, potentially lowering interest rates to support growth.
If the BoC follows through with a rate cut, it could further weaken the CAD, making the currency less attractive to investors compared to the US Dollar.
USD/CAD – Technical Analysis
The USD/CAD pair is trading at $1.4174, down 0.01%, as price action consolidates just below its pivot point at $1.41888.
The pair is exhibiting a cautious bearish tone, reflecting mixed sentiment as traders assess near-term catalysts, including broader dollar strength and oil price fluctuations, which directly influence the Canadian dollar.
The RSI at 64 signals strong momentum but suggests the pair is approaching overbought territory, potentially capping further upside.
Immediate resistance is observed at $1.42266, with additional levels at $1.42657, highlighting significant barriers for bullish advances.
On the downside, immediate support lies at $1.41456, with further safety nets at $1.41004 and $1.40660. A decisive break below the $1.41456 level could signal a continuation of bearish momentum, targeting deeper retracements.
Technical indicators support a cautious outlook. The 50-day EMA at $1.40959 aligns closely with support levels, providing a key reference for potential pullbacks.
If the pair sustains trading below the pivot, bearish pressure could intensify, targeting the $1.41409 region. Conversely, a break above $1.41888 could shift sentiment to the upside, opening the door to retest $1.42266 and higher levels.
Traders are advised to monitor the $1.41841 level for entry opportunities. Selling below this threshold with a target of $1.41409 and a stop-loss at $1.42178 aligns with the current technical landscape, offering a favorable risk-reward setup.
Related News
- GOLD Price Analysis – Dec 10, 2024
USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot-Based Outlook: Bearish bias below $1.41888; support at $1.41456 and $1.41004.
- Resistance Levels: Immediate resistance at $1.42266; stronger barriers at $1.42657.
- Momentum Indicators: RSI at 64 indicates strong momentum but nearing overbought conditions.
The USD/CAD pair is trading at $1.4174, down 0.01%, as price action consolidates just below its pivot point at $1.41888.
The pair is exhibiting a cautious bearish tone, reflecting mixed sentiment as traders assess near-term catalysts, including broader dollar strength and oil price fluctuations, which directly influence the Canadian dollar.
The RSI at 64 signals strong momentum but suggests the pair is approaching overbought territory, potentially capping further upside.
Immediate resistance is observed at $1.42266, with additional levels at $1.42657, highlighting significant barriers for bullish advances.
On the downside, immediate support lies at $1.41456, with further safety nets at $1.41004 and $1.40660. A decisive break below the $1.41456 level could signal a continuation of bearish momentum, targeting deeper retracements.
Technical indicators support a cautious outlook. The 50-day EMA at $1.40959 aligns closely with support levels, providing a key reference for potential pullbacks.
If the pair sustains trading below the pivot, bearish pressure could intensify, targeting the $1.41409 region. Conversely, a break above $1.41888 could shift sentiment to the upside, opening the door to retest $1.42266 and higher levels.
Traders are advised to monitor the $1.41841 level for entry opportunities. Selling below this threshold with a target of $1.41409 and a stop-loss at $1.42178 aligns with the current technical landscape, offering a favorable risk-reward setup.
USD/CAD - Trade Ideas
Entry Price – Sell Below 1.41841
Take Profit – 1.41409
Stop Loss – 1.42178
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$432/ -$337
Profit & Loss Per Mini Lot = +$43/ -$33
USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Support and Resistance: Immediate resistance at $1.41291, while critical support lies at $1.40242 and $1.39821.
- Trend Indicators: Price near the 50 EMA ($1.40264); RSI at 54 reflects mild bullish bias without extremes.
- Trade Setup: Sell below $1.40584, targeting $1.40019 with a stop-loss at $1.41090.
USD/CAD remains steady at $1.4058, registering minimal change for the session (-0.00%). The pair hovers just below the pivot point at $1.40893, reflecting indecision as the market consolidates after recent gains.
The 4-hour chart shows price action closely aligned with the 50 EMA at $1.40264, suggesting a delicate balance between bullish and bearish forces.
Immediate resistance is at $1.41291, a level that aligns with the upper end of the current range. A break above this resistance could push the pair toward $1.41776, a key psychological barrier.
On the downside, immediate support at $1.40242 is critical; a breach would likely expose $1.39821, with further declines potentially targeting $1.39489. The RSI stands at 54, indicating mild bullish momentum but no significant overbought or oversold conditions.
The technical landscape favors a cautious bearish bias, particularly if prices fail to reclaim the pivot level. A recommended trade strategy is to sell below $1.40584, targeting $1.40019 as the take-profit level, with a prudent stop-loss at $1.41090.
This setup leverages the pair's proximity to the 50 EMA and aligns with its recent inability to sustain a clear breakout.
USD/CAD - Trade Ideas
Entry Price – Sell Below 1.40584
Take Profit – 1.40019
Stop Loss – 1.41090
Risk to Reward – 1: 1.12
Profit & Loss Per Standard Lot = +$565 -$506
Profit & Loss Per Mini Lot = +$56/ -$50
USD/CAD Price Analysis – Dec 03, 2024
Daily Price Outlook
During the European trading session, the USD/CAD currency pair continued its bearish trend, remaining under pressure around the 1.4040 level, even hitting an intraday low of 1.4010.
This downward movement was largely driven by a weakening US dollar, which has been losing momentum amid growing expectations that the Federal Reserve could cut rates in December.
On top of that, speculation that OPEC+ may delay its plans to boost oil production has been supporting crude prices for a second consecutive day.
This, combined with a reduced likelihood of a significant rate cut by the Bank of Canada (BoC) in December, is weighing on the Canadian Dollar, further pressuring the USD/CAD pair.
Geopolitical Risks, Oil Prices, and US Economic Data Influence USD/CAD Movement
Despite a ceasefire deal between Israel and the Lebanon-based Hezbollah militant group, the geopolitical risk premium remains high due to the ongoing Russia-Ukraine conflict. This uncertainty continues to weigh on global markets.
At the same time, expectations that OPEC+ will delay plans to increase oil production are providing support to crude oil prices for a second consecutive day.
This, coupled with reduced expectations for a large rate cut by the Bank of Canada (BoC) in December, is putting pressure on the Canadian Dollar (CAD), which is a commodity-linked currency. As a result, the USD/CAD pair is seeing some downward pressure.
Meanwhile, the US Dollar Index (DXY), which tracks the greenback against a basket of currencies, is struggling to build on its recent bounce from a nearly three-week low.
The increased likelihood of the Federal Reserve cutting rates in December has weakened the dollar. However, investors are betting that US President-elect Donald Trump's expansionary policies could lead to higher inflation, prompting the Fed to keep rates higher for longer. This provides some support to US bond yields and, in turn, the USD.
Looking ahead, traders will focus on the release of the US JOLTS Job Openings data later today, which could offer short-term trading opportunities.
Meanwhile, the US economic data this week, including the Nonfarm Payrolls (NFP) report and Fed Chair Jerome Powell’s speech, will likely influence expectations for US interest rates. The outcome of Thursday's OPEC+ meeting will also be crucial for oil prices and could impact the USD/CAD pair.
USD/CAD – Technical Analysis
USD/CAD remains steady at $1.4058, registering minimal change for the session (-0.00%). The pair hovers just below the pivot point at $1.40893, reflecting indecision as the market consolidates after recent gains.
The 4-hour chart shows price action closely aligned with the 50 EMA at $1.40264, suggesting a delicate balance between bullish and bearish forces.
Immediate resistance is at $1.41291, a level that aligns with the upper end of the current range. A break above this resistance could push the pair toward $1.41776, a key psychological barrier.
On the downside, immediate support at $1.40242 is critical; a breach would likely expose $1.39821, with further declines potentially targeting $1.39489. The RSI stands at 54, indicating mild bullish momentum but no significant overbought or oversold conditions.
The technical landscape favors a cautious bearish bias, particularly if prices fail to reclaim the pivot level. A recommended trade strategy is to sell below $1.40584, targeting $1.40019 as the take-profit level, with a prudent stop-loss at $1.41090.
This setup leverages the pair's proximity to the 50 EMA and aligns with its recent inability to sustain a clear breakout.
Related News
- GOLD Price Analysis – Dec 03, 2024