- February 11, 2025
- Posted By: james w
- Category: Market News
Critical Support Zone Under Threat
The USD/CAD currency pair, commonly known as the “Loonie” due to the loon bird depicted on the Canadian one-dollar coin, represents the exchange rate between the U.S. dollar and the Canadian dollar. As of today, key economic events are poised to influence this pair. At 3:30 PM, Canada’s Building Permits data is scheduled for release, with a forecasted increase of 1.6% compared to the previous month’s decline of 5.9%. A positive deviation could bolster the Canadian dollar, potentially leading to a decrease in the USD CAD rate. Later, at 5:00 PM, Federal Reserve Chair Powell’s testimony is anticipated. Hawkish remarks may strengthen the U.S. dollar, while dovish comments could exert downward pressure. Traders should monitor these events closely, as they are likely to induce volatility in the USDCAD forex market.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
Analyzing the USD/CAD H4 chart reveals that the price is currently situated between a significant support zone (highlighted in green) and a strong resistance area. The 100-period Moving Average (MA) is positioned above the current price, indicating a prevailing bearish trend. The Relative Strength Index (RSI) is attempting to break above the 50 level, suggesting a potential shift in momentum. If the price fails to hold above the established support zone, a substantial bearish wave could ensue. Conversely, a successful breach of the resistance zone and the 100-period MA, accompanied by an RSI move above 50, may signal a bullish reversal. Traders should exercise caution and await confirmation before making trading decisions, as the USD-CAD price action remains at a critical juncture.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.