USD/CAD Forecast Today

Technical Analysis USD/CAD

Several critical economic indicators for CAD are set to be released, which could significantly impact the USD/CAD movement. These include the CPI m/m expected at 0.5%, Median CPI y/y at 2.7%, Trimmed CPI y/y at 2.9%, Common CPI y/y at 2.8%, and Core CPI m/m at 0.5%. These CPI figures reflect inflation trends and can influence the Bank of Canada’s monetary policy decisions. Higher-than-expected CPI readings could strengthen the CAD by increasing expectations for a tighter monetary policy, potentially driving the USD/CAD lower, whereas lower readings could weaken the CAD, pushing the pair higher.

   Chart Notes: 

  • Chart time-zone is UTC (+03:00)
  • Candles’ time-frame is 4h.

The USD/CAD currency pair is currently positioned at a strong support level around 1.3620. This support aligns with the 0.382 Fibonacci retracement level from the previous major bullish wave, which indicates its importance as a critical technical level. Historically, this level has seen multiple reactions as a resistance point, which adds to its validity and strength. After the price broke above this level, it successfully converted into a support area, demonstrating a classic example of resistance turning into support. The presence of this support is further reinforced by the positive divergence shown in the Relative Strength Index (RSI), suggesting that the downward momentum may be weakening and there could be a potential for a reversal or upward movement. This technical setup is essential for traders looking for potential buying opportunities, as it combines strong support with bullish RSI signals.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.