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.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish Momentum: USD/CAD climbs above the pivot point at $1.41776, signaling upside potential.
- Resistance Levels: Immediate resistance at $1.42147, with the next target at $1.42513.
- Overbought Risk: RSI at 67 hints at possible short-term corrections.
USD/CAD is trading at $1.41054, up 0.86%, as the pair continues to build on bullish momentum, testing key resistance near $1.41191. The pair remains above its pivot point at $1.41776, signaling the potential for further upside if buyers sustain control. Immediate resistance is located at $1.42147, with additional barriers at $1.42513.
On the downside, immediate support lies at $1.40828, followed by stronger levels at $1.40531 and $1.40242, where buyers may look to re-enter if the pair retraces. The 50-day EMA, currently at $1.39861, serves as a dynamic support, reinforcing the upward trajectory.
The RSI at 67 suggests the pair is nearing overbought territory, which could trigger profit-taking in the short term. A break below $1.41198 may expose USD/CAD to a corrective pullback toward the $1.40531 support. Conversely, a sustained break above $1.41776 could pave the way for a rally toward $1.42147 and beyond.
USD/CAD - Trade Ideas
Entry Price – Sell Below 1.41198
Take Profit – 1.40531
Stop Loss – 1.41698
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$667/ -$500
Profit & Loss Per Mini Lot = +$66/ -$50
USD/CAD Price Analysis – Nov 26, 2024
Daily Price Outlook
Despite the US Dollar bearish bias, the USD/CAD pair has continued to rise, trading around 1.4090, with an intra-day high of 1.4178.
However, the upward trend can be largely attributed to market uncertainty sparked by President-elect Donald Trump's announcement of a 25% tariff on imports from Mexico and Canada, along with a 10% increase in tariffs on Chinese goods entering the US.
These developments weighed heavily on the Canadian Dollar, which is sensitive to risk, pushing the USD/CAD higher.
Moreover, weaker oil prices are adding pressure on the CAD as Canada is the largest oil exporter to the US, its currency often moves in line with oil price changes. When crude prices drop, the CAD tends to weaken, further fueling the rise in USD/CAD.
USD/CAD Surges Amid Tariff Concerns and Falling Oil Prices
However, the global market sentiment has been flashing red as market uncertainty increased following President-elect Donald Trump's announcement of a 25% tariff on imports from Mexico and Canada, along with a 10% increase in tariffs on Chinese goods entering the US.
This news has weakened market sentiment, putting pressure on the Canadian Dollar (CAD), which is sensitive to such risk factors.
US President-elect Donald Trump and Canadian Prime Minister Justin Trudeau had a positive talk on trade and border security on Monday night. While the conversation was seen as constructive, Canada’s Deputy Prime Minister did not mention Trump’s threat of tariffs.
She stressed that the Canada-US relationship is balanced and beneficial, especially for American workers, but the threat of tariffs is still affecting market sentiment.
On the other hand, the weaker crude oil prices are adding pressure on the CAD. As Canada is the largest oil exporter to the US, the value of the Canadian Dollar often moves in sync with oil price changes. At the time of writing, West Texas Intermediate (WTI) oil is trading around $69.00.
The decline in oil prices follows reports of a potential resolution to the Israel-Hezbollah conflict, easing geopolitical tensions and further contributing to the drop in oil prices, which typically weakens the CAD.
Therefore, the combination of tariff concerns and falling oil prices is putting downward pressure on the Canadian Dollar, leading to a continued rise in the USD/CAD pair. This allows the USD to strengthen against the CAD, pushing the pair higher.
USD Faces Pressure Amid Fed's Rate Cut Comments, but Strong PMI Data Provides Stability
On the US front, the US Dollar (USD) is facing pressure after comments from Federal Reserve (Fed) officials on Tuesday. Federal Reserve Bank of Chicago President Austan Goolsbee suggested that the Fed is likely to continue lowering interest rates to a neutral level, which neither stimulates nor restricts economic activity.
Meanwhile, Minneapolis Fed President Neel Kashkari mentioned that it might be appropriate to consider another rate cut at the Fed's meeting in December, according to Bloomberg.
Despite these dovish signals, the declines in the US dollar could be short-lived. This is mainly due to strong preliminary data from the S&P Global US Purchasing Managers’ Index (PMI), which shows better-than-expected economic performance.
These solid figures have helped reduce concerns about the economy, supporting the idea that the Fed may take a more gradual approach to further rate cuts.
Therefore, the Fed's dovish comments put some pressure on the USD, but strong PMI data provides support. This mixed outlook limits significant declines in the USD, helping to keep the USD/CAD pair relatively stable, with potential for gradual upward movement.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Level: Below $1.40263 favors bearish momentum; above it, buyers could regain control.
- Resistance Zones: Watch $1.40489 and $1.40711 for potential rebound caps.
- Support Levels: Key levels to watch are $1.39888 and $1.39599 for downside extensions.
USD/CAD is trading at $1.40166, down 0.02%, as bearish momentum takes hold on the 4-hour chart. The pair is currently below the pivot point at $1.40263, signaling potential downward pressure.
Immediate resistance stands at $1.40489, followed by $1.40711 and $1.41016, which could act as hurdles for any rebound attempts. On the downside, immediate support lies at $1.39888, with further levels at $1.39599 and $1.39303 providing key zones for bearish targets.
The 50-day EMA at $1.40329 adds to the resistance, reflecting near-term selling bias. Meanwhile, the RSI at 39 highlights bearish momentum but suggests the pair is nearing oversold conditions, which could trigger short-term consolidation. If USD/CAD breaks below $1.39888, it could test $1.39599, but a reversal above $1.40263 would shift the focus back to resistance at $1.40489.
For traders, short positions below $1.40260 align with the bearish outlook. A take-profit at $1.39882 offers a reasonable target, while a stop-loss at $1.40490 helps manage risk.
Selling below $1.40260 with a take-profit at $1.39882 and a stop-loss at $1.40490 aligns with the bearish trend while offering balanced risk management.
USD/CAD – Technical Analysis
Entry Price – Sell Below 1.40260
Take Profit – 1.39882
Stop Loss – 1.40490
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$378/ -$230
Profit & Loss Per Mini Lot = +$37/ -$23
USD/CAD Price Analysis – Nov 19, 2024
Daily Price Outlook
The Canadian dollar is gaining momentum ahead of today's crucial inflation report, with USD/CAD indicating a possible turnaround to start the week.
However, whether this momentum lasts beyond the near term will most likely be determined by adjustments in US interest rate expectations rather than domestic causes.
The USD/CAD is traded currently at 1.402 with 0.09% increase from yesterday. Markets expect Donald Trump's administration to revive inflation and halt the Federal Reserve's rate decreases.
This, in turn, adds to the USD's gains. Futures markets suggest a 58.7% chance of a Fed rate cut in December, however expectations for rate cuts through 2025 have dropped to 77 basis points (bps).
Geopolitical Tensions Boost US Dollar
The return of geopolitical tensions in the Middle East and on the Russia-Ukraine front bolsters safe-haven currencies such as the Greenback. CNN News claimed on Sunday, citing two US sources, that US President Joe Biden's administration had authorised Ukraine to use US armaments to strike inside Russia, a significant shift in Washington's attitude towards the Ukraine-Russia conflict.
Investors will keep an eye on developments related to geopolitical threats. Any hints of escalation may cause the US Dollar (USD) to rise against the Loonie.
Inflation Report in Focus as BoC Faces Key Decisions on Rate Cuts
Today's inflation report stands out amid a lacklustre global data week. The annual CPI rate is predicted to rise from 1.6% to 1.9% in October, approaching the middle of the Bank of Canada's (BoC) 1-3% target range. Core inflation, which is the average of Statistics Canada's trim and median CPI estimates, is predicted to be 2.4%, slightly higher than September's rate.
With the BoC expecting core inflation of 2.3% by December, a result that meets market expectations should do little to dampen the belief that further rate cuts are on the way. However, if an upside surprise occurs, the Bank of Canada may begin to decrease the rate of easing.
In the policy statement released on October 23, the BoC stated that the timing and speed of additional policy rate cuts will be determined by "incoming information and our estimation of its implications for the inflation outlook.
BoC Easing Cycle: Quick Start, Sluggish End
Swaps markets are divided on whether the Bank of Canada would drop interest rates by another 50 basis points at its next meeting, following the reduction in October. Traders are currently leaning towards a lower 25-point cut, with a 50-point move seen as a 44% probability.
Looking further ahead, the easing cycle is projected to slow significantly. Markets are pricing in a cumulative 88 basis point decrease by September 2025, indicating a more gradual approach.
USD/CAD – Technical Analysis
USD/CAD is trading at $1.40166, down 0.02%, as bearish momentum takes hold on the 4-hour chart. The pair is currently below the pivot point at $1.40263, signaling potential downward pressure.
Immediate resistance stands at $1.40489, followed by $1.40711 and $1.41016, which could act as hurdles for any rebound attempts. On the downside, immediate support lies at $1.39888, with further levels at $1.39599 and $1.39303 providing key zones for bearish targets.
The 50-day EMA at $1.40329 adds to the resistance, reflecting near-term selling bias. Meanwhile, the RSI at 39 highlights bearish momentum but suggests the pair is nearing oversold conditions, which could trigger short-term consolidation. If USD/CAD breaks below $1.39888, it could test $1.39599, but a reversal above $1.40263 would shift the focus back to resistance at $1.40489.
For traders, short positions below $1.40260 align with the bearish outlook. A take-profit at $1.39882 offers a reasonable target, while a stop-loss at $1.40490 helps manage risk.
Selling below $1.40260 with a take-profit at $1.39882 and a stop-loss at $1.40490 aligns with the bearish trend while offering balanced risk management.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- USD/CAD maintains a bullish outlook above the $1.39420 pivot point.
- RSI at 65 signals near overbought conditions, though upside potential remains.
- Immediate resistance at $1.39590 could pave the way for further gains if breached.
The USD/CAD pair is trading at $1.39476, up 0.16%, and currently maintains a bullish stance above its pivot point of $1.39420. This level serves as a critical support, indicating potential for further gains.
.Immediate resistance is situated at $1.39590, with additional levels at $1.39740 and $1.39892. Breaking through these levels could reinforce the bullish outlook, particularly as the U.S. dollar finds strength amid resilient economic indicators and higher Treasury yields.
On the downside, support emerges at $1.39322, followed by $1.39174 and $1.38974. A breach below these support levels could trigger a short-term correction, undermining the bullish sentiment.
The Relative Strength Index (RSI) is currently at 65, indicating that while USD/CAD is nearing overbought conditions, there may still be room for further appreciation. However, an RSI close to overbought territory signals that buyers should proceed with some caution as momentum could slow.
The 50-day Exponential Moving Average (EMA) sits at $1.39187, lending further support to the upward trend as long as prices remain above this average.
Given these technical indicators, USD/CAD's outlook remains moderately bullish in the near term. A buy entry above $1.39419 is recommended, with a take-profit target of $1.39703 and a stop-loss at $1.39241 for effective risk management.
USD/CAD - Trade Ideas
Entry Price – Buy Above 1.39419
Take Profit – 1.39703
Stop Loss – 1.39241
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$284/ -$178
Profit & Loss Per Mini Lot = +$28/ -$17
USD/CAD Price Analysis – Nov 12, 2024
Daily Price Outlook
During the European session on Tuesday, the USD/CAD currency pair continued its upward trend for the third day, trading near 1.3950 level. However, the US dollar strengthened further after the confirmation of Donald Trump’s victory in the US election.
Analysts believe that Trump’s potential fiscal policies, which may boost investment, spending, and labor demand, could increase inflation risks. This might prompt the Federal Reserve (Fed) to take a more hawkish approach, raising interest rates to control inflation.
As a result, the expectations of a tighter US monetary policy are likely to support the US dollar, benefiting the USD/CAD pair. With this ongoing trend, traders are keeping a close eye on potential developments that could further impact the USD and the currency pair’s movement in the near future.
Impact of Falling Crude Oil Prices on the USD/CAD Pair
On the CAD front, the Canadian Dollar (CAD) is under pressure due to falling crude oil prices. This is because Canada is the largest oil exporter to the United States, so when oil prices drop, it negatively impacts the CAD. As of now, West Texas Intermediate (WTI) oil is trading around $67.90. Lower oil prices tend to weaken the Canadian Dollar because the country relies heavily on oil exports.
Crude oil prices are continuing to decline due to concerns about a potential trade war under a Trump administration, which could lead to tariffs and disrupt global trade. Additionally, there are worries about slower demand growth in China, a major consumer of oil.
These factors have caused oil prices to fall further, putting additional downward pressure on the CAD. Traders and analysts are watching closely to see how these developments might affect oil prices and, in turn, the value of the Canadian Dollar.
The falling crude oil prices put downward pressure on the Canadian Dollar, which may weaken the CAD against the US Dollar. As a result, the USD/CAD pair could continue to rise, benefiting from a stronger USD and a weaker CAD.
Impact of US Economic Outlook and Fed Policy on the USD/CAD Pair
On the US front, the broad-based US Dollar (USD) continues to strengthen after the confirmation of Donald Trump’s victory in the US election. Analysts believe that Trump’s potential fiscal policies could boost investment, spending, and labor demand, which might increase inflation risks.
This could prompt the Federal Reserve (Fed) to adopt a more hawkish approach, raising interest rates to control inflation. As a result, the USD and the USD/CAD pair may see further support.
On Sunday, Minneapolis Fed President Neel Kashkari said the US economy is showing strength as the Fed works to lower inflation. However, he mentioned that the Fed isn’t done yet and needs more proof before considering another rate cut.
The Fed’s goal is to bring inflation down to 2%, and until that happens, they’re unlikely to lower rates further. This cautious approach helps support the strength of the US Dollar.
Therefore, the US Dollar’s strength, fueled by potential fiscal policies and the Federal Reserve's hawkish stance, supports the USD/CAD pair. As inflation risks rise, the Fed may raise interest rates, further boosting the USD and likely pushing the USD/CAD pair higher.
USD/CAD – Technical Analysis
The USD/CAD pair is trading at $1.39476, up 0.16%, and currently maintains a bullish stance above its pivot point of $1.39420. This level serves as a critical support, indicating potential for further gains.
.Immediate resistance is situated at $1.39590, with additional levels at $1.39740 and $1.39892. Breaking through these levels could reinforce the bullish outlook, particularly as the U.S. dollar finds strength amid resilient economic indicators and higher Treasury yields.
On the downside, support emerges at $1.39322, followed by $1.39174 and $1.38974. A breach below these support levels could trigger a short-term correction, undermining the bullish sentiment.
The Relative Strength Index (RSI) is currently at 65, indicating that while USD/CAD is nearing overbought conditions, there may still be room for further appreciation. However, an RSI close to overbought territory signals that buyers should proceed with some caution as momentum could slow.
The 50-day Exponential Moving Average (EMA) sits at $1.39187, lending further support to the upward trend as long as prices remain above this average.
Given these technical indicators, USD/CAD's outlook remains moderately bullish in the near term. A buy entry above $1.39419 is recommended, with a take-profit target of $1.39703 and a stop-loss at $1.39241 for effective risk management.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Sentiment: USD/CAD below $1.39210 pivot, with bearish pressure intact.
- 50 EMA Resistance: The $1.39120 level acts as resistance, sustaining downward bias.
- Sell Strategy: Entry below $1.38931, targeting $1.38629 with a stop loss at $1.39140 to manage upside risk.
The USD/CAD pair is trading at $1.38862, down by 0.12% in the latest session, as it encounters downward pressure near key technical levels. Currently, the pair is testing a critical pivot at $1.39210, which defines its short-term direction.
The Relative Strength Index (RSI) stands at 36, edging towards the oversold zone, indicating that the bearish momentum may be close to exhaustion, though a further drop remains possible.
Immediate resistance is positioned at $1.39349, with further upside barriers at $1.39489. A push above these levels could shift sentiment to a more bullish outlook, targeting higher grounds. However, the 50-day Exponential Moving Average (EMA) at $1.39120 serves as a key point of overhead resistance, reinforcing a bearish bias below this level.
On the support side, the first major support lies at $1.38789, with additional safety nets at $1.38635 and $1.38447. Should USD/CAD break below the $1.38789 support level, it could accelerate selling pressure, possibly driving the pair lower.
For now, the market favors a bearish stance, with a recommended entry below $1.38931, targeting $1.38629 for profit-taking while setting a stop loss at $1.39140 to manage potential risks.
Overall, USD/CAD remains in a downtrend, with key levels to watch on both sides. A break below immediate support could further solidify the bearish trend, while any recovery above the 50 EMA may indicate a potential reversal.
USD/CAD - Trade Ideas
Entry Price – Sell Below 1.38931
Take Profit – 1.38629
Stop Loss – 1.39140
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$302/ -$209
Profit & Loss Per Mini Lot = +$30/ -$20
USD/CAD Price Analysis – Nov 05, 2024
Daily Price Outlook
During European trading hours on Tuesday, the USD/CAD currency pair continued its downward trend for the second consecutive session, hovering around 1.3880. However, the commodity-linked Canadian Dollar (CAD) is benefiting from steady oil prices as Canada is the largest oil exporter to the United States. Meanwhile, analysts expect the Bank of Canada (BoC) to implement a significant rate cut at its final monetary policy meeting of the year in December.
In contrast, the US Dollar is under pressure as the market anticipates the upcoming US elections. Hence, the USD/CAD pair is likely to weaken as the Canadian Dollar gains support from stable oil prices and anticipated rate cuts by the Bank of Canada, pressuring the US Dollar.
Therefore, the USD/CAD pair is likely to weaken as the CAD gains support from stable oil prices and anticipated rate cuts by the Bank of Canada. In contrast, the US Dollar faces downward pressure, further contributing to the pair's decline.
Impact of Oil Prices and Bank of Canada Decisions on USD/CAD Pair
As we mentioned, the Canadian Dollar is getting support from stable oil prices since Canada is the largest oil exporter to the United States. Currently, Oil prices are steady as traders remain cautious due to the uncertainties surrounding the results of the US presidential election taking place on Tuesday.
Looking ahead, the Bank of Canada (BoC) is expected to announce a significant rate cut at its final monetary policy meeting of the year in December. BoC Governor Tiff Macklem has hinted at the possibility of reducing rates by another 50 basis points (bps).
Traders will be closely watching Canada’s International Merchandise Trade data, which includes information on imports and exports, scheduled for release on Tuesday. Then, on Wednesday, the focus will shift to the BoC's Summary of Deliberations and the Ivey Purchasing Managers Index (PMI) data.
Therefore, the USD/CAD pair is likely to weaken as the Canadian Dollar gains strength from stable oil prices and anticipated rate cuts by the Bank of Canada. Meanwhile, uncertainty surrounding the US elections may put additional pressure on the US Dollar.
Impact of US Presidential Election Uncertainty on the USD/CAD Pair
On the US front, former President Donald Trump and Vice President Kamala Harris are both confident about their chances as they campaign across Pennsylvania on the last day of a very close presidential election. Current opinion polls show that Trump and Harris are almost tied, meaning the final winner may not be known for several days after the voting takes place on Tuesday.
As a result, the US Dollar is facing downward pressure despite the rising US Treasury yields. The yields on 2-year and 10-year US Treasury bonds are currently at 4.17% and 4.30%, respectively. T
Therefore, the uncertainty surrounding the US presidential election may exert downward pressure on the USD, potentially weakening the USD/CAD pair. However, stronger US Treasury yields could provide some support for the Dollar, mitigating losses against the Canadian Dollar amid stable oil prices.
USD/CAD – Technical Analysis
The USD/CAD pair is trading at $1.38862, down by 0.12% in the latest session, as it encounters downward pressure near key technical levels. Currently, the pair is testing a critical pivot at $1.39210, which defines its short-term direction.
The Relative Strength Index (RSI) stands at 36, edging towards the oversold zone, indicating that the bearish momentum may be close to exhaustion, though a further drop remains possible.
Immediate resistance is positioned at $1.39349, with further upside barriers at $1.39489. A push above these levels could shift sentiment to a more bullish outlook, targeting higher grounds. However, the 50-day Exponential Moving Average (EMA) at $1.39120 serves as a key point of overhead resistance, reinforcing a bearish bias below this level.
On the support side, the first major support lies at $1.38789, with additional safety nets at $1.38635 and $1.38447. Should USD/CAD break below the $1.38789 support level, it could accelerate selling pressure, possibly driving the pair lower.
For now, the market favors a bearish stance, with a recommended entry below $1.38931, targeting $1.38629 for profit-taking while setting a stop loss at $1.39140 to manage potential risks.
Overall, USD/CAD remains in a downtrend, with key levels to watch on both sides. A break below immediate support could further solidify the bearish trend, while any recovery above the 50 EMA may indicate a potential reversal.