USD/CAD Price Analysis – Sep 24, 2024
Daily Price Outlook
During the European session on Tuesday, the USD/CAD pair extended its downward trend, dropping to approximately 1.3510.
This decline was largely attributed to the weakening of the US dollar. Market participants are closely watching the upcoming release of the US September Consumer Confidence data, along with speeches from Federal Reserve Governor Michelle Bowman and Bank of Canada Governor Tiff Macklem.
Both events could have a substantial impact on market sentiment and influence trading decisions.
Impact of US Economic Data and Fed Policy on USD/CAD Pair
However, the ongoing weakness in the US dollar is putting pressure on the USD/CAD pair. Investors are closely monitoring the upcoming release of the US September Consumer
Confidence data, along with speeches from Federal Reserve Governor Michelle Bowman. Recently, several Federal Reserve officials have hinted at the potential for significant interest rate cuts later this year.
Chicago Fed President Austan Goolsbee noted that lowering rates could facilitate a smooth economic landing while effectively managing inflation and safeguarding jobs.
In addition, Atlanta Fed President Raphael Bostic noted that a substantial rate cut could bring interest rates closer to neutral levels, balancing the risks between inflation and employment.
Minneapolis Fed President Neel Kashkari expects to lower rates by a quarter-point at each of the Fed's two remaining meetings this year.
Recent data showed a slight slowdown in US manufacturing activity, with the Manufacturing Purchasing Managers Index (PMI) dropping to 47.0 in September, the lowest in 15 months.
The Services PMI eased to 55.4, slightly above market expectations, indicating a gradual decline in the service sector.
Therefore, the weakness of the US dollar, coupled with anticipated interest rate cuts by the Federal Reserve, is likely to put further downward pressure on the USD/CAD pair. This sentiment may lead to continued declines as investors reassess their positions.
Potential Impact of Macklem's Speech on USD/CAD Pair
On the other hand, Bank of Canada (BoC) Governor Tiff Macklem is scheduled to speak later on Tuesday, and his remarks may shed light on the central bank's plans for interest rate cuts by year-end.
According to TD Economics, the BoC must exercise caution in implementing significant cuts, as this could drive inflation below its target range.
They estimate that Canada's "neutral" overnight rate stands at approximately 2.25 percent, which is two percentage points lower than the current rate.
Macklem's speech is expected to highlight the delicate balance the BoC must maintain between fostering economic growth and controlling inflation. If he indicates a readiness to implement significant rate cuts, it may weaken the Canadian dollar as investors recalibrate their expectations.
Conversely, a more cautious stance could strengthen the Canadian dollar, providing support for the USD/CAD pair. Market participants will be attentively monitoring his remarks for insights into the future direction of Canadian monetary policy.
USD/CAD - Technical Analysis
The USD/CAD pair is currently trading at $1.35105, down 0.19%, as the U.S. dollar weakens against the Canadian dollar during the early trading hours.
The price has slipped below its 50-day Exponential Moving Average (EMA) of $1.3561, signaling growing bearish momentum in the short term.
Immediate support is found at $1.3493, a key level that, if broken, could lead to further downside towards $1.3467 and $1.3442.
On the upside, the pair faces immediate resistance at $1.3572, which aligns with the pivot point at $1.3544. A sustained break above this could challenge higher resistance levels at $1.3601 and $1.3635, though the current downtrend suggests selling pressure may persist.
The Relative Strength Index (RSI) stands at 39, indicating the pair is approaching oversold territory but has room for further declines before a significant reversal.
Traders are watching for a potential sell-off below the $1.35298 level, with a take-profit target set at $1.34758.
Overall, the technical setup favors bearish sentiment, especially with the price trading below the 50 EMA and the RSI leaning towards oversold. If support at $1.3493 gives way, a sharper decline could be triggered.
In conclusion, USD/CAD presents a bearish outlook below $1.35298, with a potential downside target of $1.34758 and stop-loss at $1.35619.
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USD/CAD Price Analysis – Sep 17, 2024
Daily Price Outlook
During the European trading session, the USD/CAD pair struggled to maintain its recovery and slipped back to around 1.3584. The drop can be largely attributed to the weakening US dollar, which has faltered due to strong expectations of a significant Federal Reserve rate cut.
On the Canadian side, the CAD might be facing pressure from rising hopes for further interest rate cuts by the Bank of Canada (BoC).
Meanwhile, the recent remarks by BoC Governor Tiff Macklem have added to this downward pressure. Macklem hinted at the possibility of speeding up rate reductions, even suggesting a potential 50 basis point cut if economic conditions don't improve. This commentary, reported by the Financial Times, has contributed to the CAD's decline.
Impact of Fed Rate Cut Expectations and Treasury Yields on USD/CAD
On the US front, the broad-based US dollar is facing challenges due to increasing expectations of an aggressive Federal Reserve rate cut. The market is now anticipating a 50 basis point cut at the Fed's meeting on Wednesday, which could pressure the USD/CAD pair.
However, stronger US Treasury yields may provide some support for the dollar. According to the CME FedWatch Tool, there's a 38% chance of a 25 basis point rate cut and a 62% chance of a 50 basis point cut, up from 50% just a day earlier.
This reflects growing expectations for more aggressive monetary easing. Traders will also be keeping an eye on Canada’s Consumer Price Index (CPI) data for August, set to be released later in the North American session.
The anticipated aggressive Fed rate cut and strong US Treasury yields may limit the USD/CAD pair's upside. The increased chance of a 50 basis point cut adds pressure on the USD, potentially weakening its position against the CAD.
Canadian Dollar Under Pressure Amid Bank of Canada Rate Cut Expectations and Upcoming CPI Data
On the other hand, the Canadian Dollar (CAD) is facing downward pressure from expectations of more interest rate cuts by the Bank of Canada (BoC). Recent comments from BoC Governor Tiff Macklem have intensified this pressure.
Macklem hinted that the BoC might accelerate its rate cuts, potentially implementing a 50 basis point reduction if economic growth falters. This has raised concerns about further weakening of the CAD.
Traders will be closely watching Canada’s Consumer Price Index (CPI) data for August, which is set to be released later in the North American session. This inflation report could provide new insights into the Bank of Canada’s future policy decisions, especially as they prepare for their October meeting.
The CPI data will be crucial in determining whether the BoC will follow through on its plans for additional rate cuts, influencing the CAD’s performance in the currency markets.
USD/CAD - Technical Analysis
The U.S. dollar (USD/CAD) is trading at $1.35918, up 0.08% on the day, reflecting a mild upward movement as the pair inches above the key pivot point at $1.3583.
The 4-hour chart shows steady price action, with the 50-day EMA positioned at $1.3567 providing a supportive floor for bulls.
Immediate resistance stands at $1.3615, and a break above this level could pave the way for further gains toward $1.3640 and $1.3662.
Despite the upward momentum, the RSI is neutral at 55, suggesting that neither bulls nor bears have full control at the moment. However, the pair remains above the 50-day EMA, signaling that buyers still hold an edge.
On the downside, support is found at $1.3548, with subsequent levels at $1.3519 and $1.3486, should selling pressure intensify.
Traders looking to capitalize on bullish momentum could consider buying above $1.35833, targeting $1.36262, with a stop loss placed near $1.35568 to manage downside risk. However, a failure to hold above $1.3583 could see the pair test lower supports.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate resistance is at $1.3615, with further targets at $1.3640 and $1.3662.
- RSI at 55 suggests a balanced momentum, with a slight bullish tilt.
- Buy above $1.35833, aiming for $1.36262, while maintaining a stop loss at $1.35568 for risk management.
The U.S. dollar (USD/CAD) is trading at $1.35918, up 0.08% on the day, reflecting a mild upward movement as the pair inches above the key pivot point at $1.3583.
The 4-hour chart shows steady price action, with the 50-day EMA positioned at $1.3567 providing a supportive floor for bulls.
Immediate resistance stands at $1.3615, and a break above this level could pave the way for further gains toward $1.3640 and $1.3662.
Despite the upward momentum, the RSI is neutral at 55, suggesting that neither bulls nor bears have full control at the moment. However, the pair remains above the 50-day EMA, signaling that buyers still hold an edge.
On the downside, support is found at $1.3548, with subsequent levels at $1.3519 and $1.3486, should selling pressure intensify.
Traders looking to capitalize on bullish momentum could consider buying above $1.35833, targeting $1.36262, with a stop loss placed near $1.35568 to manage downside risk. However, a failure to hold above $1.3583 could see the pair test lower supports.
USD/CAD - Trade Ideas
Entry Price – Buy Above 1.35833
Take Profit – 1.36262
Stop Loss – 1.35568
Risk to Reward – 1: 6
Profit & Loss Per Standard Lot = +$429/ -$265
Profit & Loss Per Mini Lot = +$42/ -$26
USD/CAD Price Analysis – Sep 10, 2024
Daily Price Outlook
During the Asian session on Tuesday, the USD/CAD pair saw some upward movement, trading around 1.3571, thanks to growing demand for the US dollar.
This boost came despite crude oil prices struggling to maintain recent gains and dropping to their lowest levels since June 2023. The decline in oil prices is largely attributed to concerns about a possible economic slowdown in China, the world's largest oil importer.
Besides this, the Canadian dollar is facing pressure due to expectations of further interest rate cuts by the Bank of Canada, following disappointing Canadian jobs data from Friday.
These combined factors are giving the USD/CAD pair a lift, as traders navigate the impact of fluctuating oil prices and central bank policies.
CAD Struggles with Low Oil Prices and Rate Cut Expectations
On the Canadian dollar front, crude oil prices are struggling to extend their recent rebound and have fallen to their lowest levels since June 2023. This setback is mainly due to growing concerns about a potential economic slowdown in China, the world's largest oil importer.
Recent data from China reveals that oil imports were flat in August, compared to a 6.6% increase the previous month. This stagnation suggests weaker domestic demand, which is heightening market anxiety and weighing on crude oil prices.
In addition to this, expectations for more interest rate cuts by the Bank of Canada (BoC) are also affecting the Canadian dollar.
These hopes have been strengthened by disappointing Canadian jobs data from last Friday, which has weakened the Loonie further. As a result, the USD/CAD currency pair is benefiting from this situation, with the US dollar gaining traction against its Canadian counterpart.
USD Gains Support Amid Adjusted Fed Rate Cut Expectations and Upcoming Economic Data
On the US front, the US Dollar (USD) is gaining strength due to decreased expectations for a substantial 50 basis points interest rate cut by the Federal Reserve (Fed) in September. This change in outlook comes after mixed results from the recent US Nonfarm Payrolls (NFP) report.
As a result, the USD/CAD pair is finding some support. However, investors are staying cautious and are waiting to hear from Bank of Canada Governor Tiff Macklem and review the upcoming US inflation data before making any major decisions.
Meanwhile, the crucial US Consumer Price Index (CPI) report is set to be released on Wednesday, followed by the Producer Price Index (PPI) on Thursday.
These reports are expected to shape market expectations about the Federal Reserve's potential interest rate cut later this month and influence demand for the USD. Additionally, movements in oil prices will also play a key role in determining the next direction for the USD/CAD pair.
USD/CAD - Technical Analysis
The USD/CAD pair is currently trading at $1.35635, up 0.04%, hovering near a key pivot point at $1.3598. The pair has shown slight bullish momentum, supported by a relatively strong U.S. dollar.
However, the USD/CAD remains at a critical juncture, with price action confined between immediate resistance and support levels.
Immediate resistance stands at $1.3615, followed by stronger barriers at $1.3640 and $1.3662. If USD/CAD manages to break above $1.3615, it could open the door for further gains, with the 50-day Exponential Moving Average (EMA) at $1.3534 providing near-term support. The bullish bias remains intact as long as the price stays above this EMA level.
On the downside, immediate support is found at $1.3548, with the next critical levels at $1.3509 and $1.3483. If the pair fails to maintain momentum above $1.3548, selling pressure could increase, pushing the price toward $1.3509.
The Relative Strength Index (RSI) is currently at 57, suggesting neutral to slightly bullish momentum, but a dip below $1.3548 could weaken sentiment.
For now, the USD/CAD appears to be balancing between bullish and bearish pressures, with the $1.3598 pivot point serving as a key indicator for the next directional move. Traders should monitor these levels closely to identify potential entry and exit points.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- USD/CAD faces immediate resistance at $1.3615; breaking above this could signal more bullish momentum.
- Immediate support at $1.3548, with further downside risks toward $1.3509.
- RSI at 57 suggests a neutral to slightly bullish trend, but momentum remains fragile.
The USD/CAD pair is currently trading at $1.35635, up 0.04%, hovering near a key pivot point at $1.3598. The pair has shown slight bullish momentum, supported by a relatively strong U.S. dollar.
However, the USD/CAD remains at a critical juncture, with price action confined between immediate resistance and support levels.
Immediate resistance stands at $1.3615, followed by stronger barriers at $1.3640 and $1.3662. If USD/CAD manages to break above $1.3615, it could open the door for further gains, with the 50-day Exponential Moving Average (EMA) at $1.3534 providing near-term support. The bullish bias remains intact as long as the price stays above this EMA level.
On the downside, immediate support is found at $1.3548, with the next critical levels at $1.3509 and $1.3483.
If the pair fails to maintain momentum above $1.3548, selling pressure could increase, pushing the price toward $1.3509. The Relative Strength Index (RSI) is currently at 57, suggesting neutral to slightly bullish momentum, but a dip below $1.3548 could weaken sentiment.
For now, the USD/CAD appears to be balancing between bullish and bearish pressures, with the $1.3598 pivot point serving as a key indicator for the next directional move. Traders should monitor these levels closely to identify potential entry and exit points.
USD/CAD - Trade Ideas
Entry Price– Buy Above 1.35474
Take Profit – 1.35975
Stop Loss – 1.35209
Risk to Reward – 1: 1.8
Profit & Loss Per Standard Lot = +$501/ -$265
Profit & Loss Per Mini Lot = +$50/ -$26
USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- USD/CAD breaks above $1.3502, signaling potential for further gains.
- RSI at 60.80 indicates increasing bullish momentum.
- Key resistance at $1.3549 aligns with the 61.8% Fibonacci retracement level.
The USD/CAD pair is currently trading around $1.3525, showing signs of a potential bullish reversal after a period of decline. The pair has recently broken above the 50-day EMA, which is now acting as immediate support around $1.3502, suggesting a shift in momentum. The current price action indicates that if the pair maintains this level, it could extend gains towards higher resistance levels.
Key resistance levels to watch include $1.3549, which aligns with the 61.8% Fibonacci retracement level, followed by $1.3577 and $1.3614. These levels represent critical barriers where selling pressure could re-emerge. On the downside, immediate support lies at $1.3502 (pivot point), with further support levels at $1.3482 and $1.3447.
Technical indicators are favoring a continuation of the bullish trend. The RSI is currently at 60.80, reflecting the increasing buying momentum as the pair approaches overbought territory. The 50-day EMA at $1.3502 provides a critical support zone, and a close above this level would further validate the bullish outlook.
Given the recent breakout above key levels, a buy position above $1.3507 could be considered, targeting $1.3561 with a stop loss at $1.3470 to manage potential downside risk.
The overall sentiment is cautiously optimistic, with the potential for further gains if the pair sustains above the $1.3502 pivot point.
USD/CAD - Trade Ideas
Entry Price – Buy Above 1.35076
Take Profit – 1.35614
Stop Loss – 1.34706
Risk to Reward – 1: 1.45
Profit & Loss Per Standard Lot = +$538/ -$370
Profit & Loss Per Mini Lot = +$53/ -$37
USD/CAD Price Analysis – Sep 03, 2024
Daily Price Outlook
During the European trading session, the USD/CAD currency pair continued its upward trend for the second consecutive day, trading around 1.3534 and reaching an intraday high of 1.3550. This gain is largely due to the strengthened US Dollar, driven by reduced expectations of an aggressive interest rate cut by the US Federal Reserve in September.
However, the Canadian Dollar's decline may be capped by rising crude oil prices. West Texas Intermediate (WTI) oil has surged to approximately $73.60 per barrel, supported by concerns over potential supply disruptions in Libya.
US Dollar Strengthens Amid Mixed Economic Indicators and Fed Rate Cut Expectations
On the US front, the USD/CAD currency pair has risen due to a stronger US Dollar, fueled by reduced expectations of a major interest rate cut by the Federal Reserve in September. While US Treasury yields are climbing and supporting the Dollar, its gains could be limited by growing anticipation of a quarter-point rate cut.
The CME FedWatch Tool indicates a nearly 70% probability of at least a 25 basis point reduction in the Fed's September meeting. The core PCE price index, excluding food and energy, increased by 2.6%, matching previous data but falling short of the 2.7% forecast.
Additionally, the US GDP grew at a 3.0% annualized rate in Q2, exceeding the 2.8% expectation, and Initial Jobless Claims dropped to 231,000, slightly below the 232,000 forecast.
Looking ahead, markets are pricing in a nearly 69% chance of a 25 basis point rate cut in September, with a 31% probability of a 50 basis point reduction.
Upcoming data includes the US ISM Manufacturing PMI for August, expected to rise to 47.5 from 46.8, while the Services PMI may decrease to 51.1 from 51.4. Job additions for August are projected at 163,000, with the Unemployment Rate likely to edge down to 4.2%.
Rising Oil Prices and Bank of Canada Rate Cut Create Mixed Impact on CAD
On the other hand, the decline in the commodity-linked Canadian Dollar (CAD) is likely to be limited by rising crude oil prices. West Texas Intermediate (WTI) oil has surged to around $73.60 per barrel, driven by concerns over potential supply disruptions in Libya. Key oil ports in Libya have halted exports, and nationwide production has been reduced, according to Reuters.
Additionally, the upcoming Bank of Canada (BoC) interest rate decision on Wednesday will be closely watched. The BoC is expected to cut interest rates for the third time this year, with a projected reduction of a quarter percentage point to 4.25%.
Investors also anticipate further rate cuts throughout the rest of the year and into 2025. This potential rate cut could impact the Canadian Dollar's performance, as the central bank's actions are closely tied to economic conditions and currency values.
The rising crude oil prices and anticipated Bank of Canada rate cut could support the CAD, potentially limiting the USD/CAD pair's gains. While oil prices bolster the CAD, the BoC's rate cut may weaken it, creating mixed effects on USD/CAD.
USD/CAD - Technical Analysis
The USD/CAD pair is currently trading around $1.3525, showing signs of a potential bullish reversal after a period of decline. The pair has recently broken above the 50-day EMA, which is now acting as immediate support around $1.3502, suggesting a shift in momentum. The current price action indicates that if the pair maintains this level, it could extend gains towards higher resistance levels.
Key resistance levels to watch include $1.3549, which aligns with the 61.8% Fibonacci retracement level, followed by $1.3577 and $1.3614. These levels represent critical barriers where selling pressure could re-emerge. On the downside, immediate support lies at $1.3502 (pivot point), with further support levels at $1.3482 and $1.3447.
Technical indicators are favoring a continuation of the bullish trend. The RSI is currently at 60.80, reflecting the increasing buying momentum as the pair approaches overbought territory. The 50-day EMA at $1.3502 provides a critical support zone, and a close above this level would further validate the bullish outlook.
Given the recent breakout above key levels, a buy position above $1.3507 could be considered, targeting $1.3561 with a stop loss at $1.3470 to manage potential downside risk.
The overall sentiment is cautiously optimistic, with the potential for further gains if the pair sustains above the $1.3502 pivot point.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Sell Entry: Below $1.35164, targeting $1.34225.
- Immediate Support: $1.3424, with next supports at $1.3360 and $1.3287.
- RSI at 23: Signals oversold conditions, but bearish trend persists.
USD/CAD is currently trading at $1.34774, down 0.04% for the day, reflecting a mild bearish trend.
The pivot point to watch is $1.3516. If the pair continues to trade below this level, we could see further downside pressure, with immediate support at $1.3424.
Should this support break, the next levels to watch are $1.3360 and $1.3287, where additional buying interest may emerge.
The 50-day Exponential Moving Average (EMA) is sitting at $1.3612, which is above the current price and acts as a resistance level, reinforcing the bearish sentiment.
The Relative Strength Index (RSI) is at 23, indicating that the pair is in oversold territory. While this suggests that a rebound could be possible, the overall trend remains bearish as long as the price stays below the pivot point of $1.3516.
In conclusion, traders might consider selling below $1.35164, targeting a take profit around $1.34225, with a stop loss at $1.35731 to manage risk.
The immediate resistance levels to watch on the upside are $1.3574, $1.3633, and $1.3685. However, the bearish bias dominates unless the price breaks above these resistance levels.
USD/CAD - Trade Ideas
Entry Price – Sell Below 1.35164
Take Profit – 1.34225
Stop Loss – 1.35731
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$939/ -$567
Profit & Loss Per Mini Lot = +$93/ -$56
USD/CAD Price Analysis – Aug 27, 2024
Daily Price Outlook
During the early European hours on Tuesday, the USD/CAD currency pair failed to halt its downward trend and remained under pressure around 1.3466, hitting an intra-day low of 1.3463.
This decline in the USD/CAD pair could be attributed to the improving commodity-linked Canadian Dollar (CAD) amid rising crude oil prices.
On the other hand, the US Dollar initially saw modest gains but later turned bearish, possibly due to comments from key Federal Reserve (Fed) officials suggesting that interest rate cuts may be forthcoming.
Fed Chair Jerome Powell, speaking at Jackson Hole, hinted at potential policy adjustments and expressed confidence that inflation is nearing the Fed's 2% target.
Impact of Rising Oil Prices and US Interest Rate Expectations on USD/CAD
As we mentioned above, crude oil prices have surged due to concerns about potential supply disruptions. These fears are driven by the escalating conflict in the Middle East and the possible shutdown of Libyan oil fields.
Meanwhile, tensions remain high as Hamas rejected Israel's new conditions in ceasefire talks, insisting that Israel follow the terms set by US President Joe Biden and the UN Security Council.
Despite these worries, US Air Force General C.Q. Brown noted that fears of a broader conflict in the region have eased, with recent clashes between Israel and Hezbollah not escalating further.
Moreover, oil prices also gained support from growing expectations of US interest rate cuts. Such cuts could boost fuel demand by stimulating economic activity in the United States, the world's largest oil consumer.
Lower borrowing costs are likely to drive economic growth, increasing the need for oil and keeping prices elevated.
This news is likely to strengthen the Canadian Dollar (CAD) against the US Dollar (USD), pushing the USD/CAD pair lower. Rising oil prices benefit the CAD, while expectations of US interest rate cuts weaken the USD.
Potential US Interest Rate Cuts Weaken USD/CAD Pair
On the US front, the broad-based US Dollar failed to sustain its upward trend and turned bearish amid comments from Federal Reserve Chairman Jerome Powell.
Speaking at the Jackson Hole Symposium on Friday, Powell mentioned that "the time has come for policy to adjust," signaling a potential shift in interest rates. However, he did not provide specifics on when rate cuts would start or how large they might be.
In response, market expectations for a rate cut have grown. The CME FedWatch Tool shows that traders now fully anticipate at least a 25 basis point reduction by the Federal Reserve at its September meeting.
This indicates that investors believe the Fed will soon take action to support the economy, leading to a weaker US Dollar.
Therefore, this news is likely to weaken the US Dollar against the Canadian Dollar (CAD), leading to a decline in the USD/CAD pair.
The anticipation of US interest rate cuts reduces USD strength, while higher oil prices support the CAD.
USD/CAD - Technical Analysis
USD/CAD is currently trading at $1.34774, down 0.04% for the day, reflecting a mild bearish trend.
The pivot point to watch is $1.3516. If the pair continues to trade below this level, we could see further downside pressure, with immediate support at $1.3424.
Should this support break, the next levels to watch are $1.3360 and $1.3287, where additional buying interest may emerge.
The 50-day Exponential Moving Average (EMA) is sitting at $1.3612, which is above the current price and acts as a resistance level, reinforcing the bearish sentiment.
The Relative Strength Index (RSI) is at 23, indicating that the pair is in oversold territory. While this suggests that a rebound could be possible, the overall trend remains bearish as long as the price stays below the pivot point of $1.3516.
In conclusion, traders might consider selling below $1.35164, targeting a take profit around $1.34225, with a stop loss at $1.35731 to manage risk.
The immediate resistance levels to watch on the upside are $1.3574, $1.3633, and $1.3685. However, the bearish bias dominates unless the price breaks above these resistance levels.
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USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- USD/CAD is in oversold territory with RSI at 23.
- Key pivot point at $1.3643 could determine the next move.
- Selling pressure likely if the pair breaks below $1.3643.
USD/CAD is trading at $1.36189, holding steady with no significant movement. The pair is currently hovering near the pivot point at $1.3643, a critical level that could determine the next direction.
Immediate resistance is at $1.3679, with further resistance at $1.3710 and $1.3739. On the downside, key support levels to watch are $1.3603, followed by $1.3572 and $1.3544.
The Relative Strength Index (RSI) is at 23, indicating that the pair is in oversold territory, which could suggest a potential bounce or limited downside movement.
The 50-day Exponential Moving Average (EMA) is positioned at $1.3712, suggesting that the overall trend is bearish.
Given the current technical setup, USD/CAD appears to be under selling pressure, especially if it breaks below the $1.3643 pivot point.
A move below this level could trigger further downside toward the $1.3603 support and potentially lower.
However, if the pair manages to break above $1.3643, we could see a test of the immediate resistance at $1.3679.
Conclusion: The recommended strategy is to sell below $1.36430, with a target of $1.35837 and a stop loss at $1.36789.
USD/CAD - Trade Ideas
Entry Price – Sell Below 1.36430
Take Profit – 1.35837
Stop Loss – 1.36789
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$593/ -$359
Profit & Loss Per Mini Lot = +$59/ -$35