Daily Trade Ideas

USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Jun 19, 2024
Usdcad

Daily Price Outlook

- USD/CAD is trading at $1.37168, down 0.02%, with a pivot point at $1.3725.

- Immediate resistance at $1.3756, $1.3791, and $1.3826; support at $1.3684, $1.3649, and $1.3607.

- RSI at 43 and 50-day EMA at $1.3740 indicate a neutral stance with potential for further movement.

The USD/CAD is currently trading at $1.37168, down 0.02%, as the pair experiences a slight decline on the 4-hour chart. The pivot point is positioned at $1.3725, which is critical for determining the next price movement.

Immediate resistance levels are noted at $1.3756, followed by $1.3791 and $1.3826. These resistance levels are significant obstacles that need to be breached for a continued upward trend.

On the downside, immediate support is found at $1.3684, with further support levels at $1.3649 and $1.3607. These support levels are crucial in preventing further declines and will be closely watched by market participants.

The Relative Strength Index (RSI) is at 43, indicating a neutral stance with room for potential movement in either direction. The 50-day Exponential Moving Average (EMA) is at $1.3740, providing a significant resistance level that could cap upward movements in the short term.

Overall, the outlook for USD/CAD remains bearish below the $1.3725 pivot point. Conversely, a break above the immediate resistance at $1.3756 could signal a bullish reversal, pushing the price higher.

The recommended entry point is to sell below $1.37248, with a take profit target at $1.36838 and a stop loss at $1.37473.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Trade Ideas

Entry Price – Sell Below 1.37248

Take Profit – 1.36838

Stop Loss – 1.37473

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$410/ -$225

Profit & Loss Per Mini Lot = +$41/ -$22

USD /CAD

Daily Trade Ideas

USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Jun 11, 2024
Usdcad

Daily Price Outlook

- USD/CAD up 0.05%, trading at $1.37648, bullish sentiment.

- Key resistance at $1.3781, support at $1.3702, guiding price action.

- RSI at 65, indicating strong momentum, approaching overbought territory.

The USD/CAD pair saw a modest increase of 0.05%, bringing its price to $1.37648. The pivot point is established at $1.3808, acting as a crucial level that the pair is currently trading below.

Immediate resistance is observed at $1.3781, which, if breached, could open the path towards the next resistance levels at $1.3808 and $1.3846.

The ability to overcome these resistance points would indicate a strengthening bullish trend. On the flip side, immediate support is identified at $1.3702, with further support levels at $1.3663 and $1.3619, providing a safety net against potential declines.

The Relative Strength Index (RSI) is positioned at 65, indicating that the pair is approaching overbought territory. This suggests that while the upward momentum is strong, there may be limited room for additional gains without a correction.

Additionally, the 50-Day Exponential Moving Average (EMA) is located at $1.3690, supporting the bullish outlook as the current price is above this critical moving average.

In conclusion, the current technical setup favors a bullish strategy. An entry price with a buy limit at $1.37496 is recommended, targeting a take profit at $1.38084 while maintaining a stop loss at $1.37160 to manage risk.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Trade Ideas

Entry Price – Buy Limit 1.37496

Take Profit – 1.38084

Stop Loss – 1.37160

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$588/ -$336

Profit & Loss Per Mini Lot = +$58/ -$33

USD /CAD

Technical Analysis

USD/CAD Price Analysis – June 11, 2024

By LonghornFX Technical Analysis
Jun 11, 2024
Usdcad

Daily Price Outlook

The USD/CAD currency pair has prolonged its upward trend and remained well bid around 1.3777 level, hitting the intra-day high of 1.3785 level. This upward trend can be attributed to a combination of factors, including the strength of the US dollar and the decline in the price of West Texas Intermediate (WTI) crude oil.

The US dollar still bullish amidst a hawkish sentiment surrounding the Federal Reserve. However, the anticipation of the Fed maintaining interest rates steady within the range of 5.25%-5.50% to curb inflation toward its 2% target bolsters the US dollar's position.

Simultaneously, the decline in WTI crude oil prices exerts pressure on the commodity-linked Canadian dollar (CAD). Given Canada's status as the largest oil exporter to the United States, fluctuations in oil prices significantly impact the CAD.

Hawkish Sentiment Surrounding the Fed Boosts the US Dollar and Its Impact on USD/CAD

However, the bullish performance of the USD/CAD pair is closely tied to the hawkish sentiment surrounding the Federal Reserve as the robust US jobs data for May has diminished the odds of two Federal Reserve interest rate cuts in 2024, as indicated by the CME FedWatch Tool.

This reduction in the likelihood of a rate cut, particularly in September, supports the strength of the US dollar.

Investors are closely monitoring the Federal Reserve's upcoming interest rate decision scheduled for Wednesday, anticipating the central bank to maintain rates within the current range. This anticipation of monetary policy stability underpins the bullish outlook for the US dollar, consequently driving the USD/CAD pair higher.

Decline in WTI Price Puts Pressure on Commodity-Linked Canadian Dollar and Its Impact on USD/CAD

Despite positive job growth and wage increases in Canada, the Canadian dollar (CAD) faces challenges due to a rise in the unemployment rate to 6.2%, its highest in over two years.

Canada's heavy reliance on oil exports makes it vulnerable to fluctuations in oil prices, and the recent decline in the price of West Texas Intermediate (WTI) crude oil has exacerbated pressures on the CAD.

While crude oil prices are expected to rise due to increased fuel demand this summer, the current downturn in WTI prices adds strain to the Canadian economy.

Traders are closely watching Bank of Canada Governor Tiff Macklem's upcoming speech at the Conference of Montreal 2024 for insights into inflation discussions, which could further impact the USD/CAD pair's trend.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Technical Analysis

The USD/CAD pair saw a modest increase of 0.05%, bringing its price to $1.37648. The pivot point is established at $1.3808, acting as a crucial level that the pair is currently trading below. Immediate resistance is observed at $1.3781, which, if breached, could open the path towards the next resistance levels at $1.3808 and $1.3846.

The ability to overcome these resistance points would indicate a strengthening bullish trend. On the flip side, immediate support is identified at $1.3702, with further support levels at $1.3663 and $1.3619, providing a safety net against potential declines.

The Relative Strength Index (RSI) is positioned at 65, indicating that the pair is approaching overbought territory. This suggests that while the upward momentum is strong, there may be limited room for additional gains without a correction.

Additionally, the 50-Day Exponential Moving Average (EMA) is located at $1.3690, supporting the bullish outlook as the current price is above this critical moving average.

In conclusion, the current technical setup favors a bullish strategy. An entry price with a buy limit at $1.37496 is recommended, targeting a take profit at $1.38084 while maintaining a stop loss at $1.37160 to manage risk.

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Technical Analysis

USD/CAD Price Analysis – June 4, 2024

By LonghornFX Technical Analysis
Jun 4, 2024
Usdcad

Daily Price Outlook

During the European trading session, the USD/CAD currency pair has maintained its upward trend and remained well-bid around the 1.3676 level, hitting the intra-day high of 1.3700.

However, this bullish trend can be attributed to several factors, including the renewed strength of the US dollar and market expectations for a rate cut by the Bank of Canada. Moving on, the USD/CAD pair is poised to maintain its bullish momentum in the near term as investors anticipate key economic data releases and central bank decisions.

Bullish US Dollar & Economic Data & Its Impact on USD/CAD Pair

On the US front, the broad-based US dollar managed to halt its previous losses and regained positive traction, thanks to higher US Treasury yields and risk-off market sentiment.

Although there have been recent dips in the dollar prompted by economic data, such as the Institute for Supply Management (ISM) revealing a contraction in the US manufacturing sector for the second consecutive month in May, the overall bullish sentiment towards the USD has remained dominant.

Investors remain hopeful about the strength of the US economy, particularly as anticipation builds around the upcoming US Services Purchasing Managers' Index (PMI) and Nonfarm Payrolls (NFP) data. Hence, positive outcomes from these indicators could further bolster confidence in the USD and propel the USD/CAD pair higher.

Impact of Monetary Policy Divergence on USD/CAD Pair

On the other side, the expectations for the Bank of Canada (BoC) to cut its key lending rate by a quarter of a percentage point are also influencing the USD/CAD pair. The BoC's potential rate cut, amidst cooling inflation in Canada, contrasts with the US Federal Reserve's stance, which has been more cautious about adjusting interest rates.

This divergence in monetary policy between the BoC and the Fed is likely to weigh on the Canadian dollar (CAD) and provide a favorable environment for the USD/CAD pair to continue its upward movement.

Meanwhile, the comments from BoC Governor Tiff Macklem indicating openness to rate cuts based on economic data further support market expectations of a potential rate cut, adding to the bullish outlook for the USD/CAD pair.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Technical Analysis

The USD/CAD pair is currently trading at $1.36558, reflecting a 0.16% increase in the 4-hour timeframe. The pivot point at $1.3661 is a crucial level, serving as a key benchmark for potential price movements.

Immediate resistance levels are identified at $1.3687, $1.3705, and $1.3728, indicating potential upward barriers that could limit further gains.

On the support side, immediate support is noted at $1.3621, followed by $1.3604 and $1.3580. The 50-day Exponential Moving Average (EMA) is positioned at $1.3666, suggesting that the current price is hovering near this important technical indicator.

The Relative Strength Index (RSI) is at 51, indicating a neutral market sentiment, with no strong bias toward either buying or selling.

The technical outlook suggests a cautious approach, as the pair remains close to the pivot point and the 50 EMA. A break below the pivot point of $1.3661 could signal a bearish trend, with immediate targets at the support levels of $1.3621 and $1.3604.

Conversely, a move above the resistance level at $1.3687 could indicate further bullish momentum, targeting the next resistance levels at $1.3705 and $1.3728.

Given the current market conditions, the recommended strategy is to sell below $1.3666, with a take-profit target at $1.3621 and a stop loss at $1.3687. This strategy accounts for the possibility of a bearish trend continuation if the price fails to maintain above the pivot point and the 50 EMA.

In conclusion, the outlook for USD/CAD remains cautiously bearish below the $1.3661 pivot point. Immediate resistance levels at $1.3687, $1.3705, and $1.3728 could cap any potential upward movements.

On the downside, support levels at $1.3621, $1.3604, and $1.3580 are critical to monitor for signs of further bearish momentum.

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Daily Trade Ideas

USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Jun 4, 2024
Usdcad

Daily Price Outlook

- USD/CAD is trading at $1.36558, up 0.16%, with a cautious outlook below the $1.3661 pivot point.

-Immediate resistance levels are set at $1.3687, $1.3705, and $1.3728, indicating potential upward barriers.

- Support levels at $1.3621, $1.3604, and $1.3580 could serve as key areas for potential downward movements.

The USD/CAD pair is currently trading at $1.36558, reflecting a 0.16% increase in the 4-hour timeframe. The pivot point at $1.3661 is a crucial level, serving as a key benchmark for potential price movements.

Immediate resistance levels are identified at $1.3687, $1.3705, and $1.3728, indicating potential upward barriers that could limit further gains.

On the support side, immediate support is noted at $1.3621, followed by $1.3604 and $1.3580. The 50-day Exponential Moving Average (EMA) is positioned at $1.3666, suggesting that the current price is hovering near this important technical indicator.

The Relative Strength Index (RSI) is at 51, indicating a neutral market sentiment, with no strong bias toward either buying or selling.

The technical outlook suggests a cautious approach, as the pair remains close to the pivot point and the 50 EMA. A break below the pivot point of $1.3661 could signal a bearish trend, with immediate targets at the support levels of $1.3621 and $1.3604.

Conversely, a move above the resistance level at $1.3687 could indicate further bullish momentum, targeting the next resistance levels at $1.3705 and $1.3728.

Given the current market conditions, the recommended strategy is to sell below $1.3666, with a take-profit target at $1.3621 and a stop loss at $1.3687. This strategy accounts for the possibility of a bearish trend continuation if the price fails to maintain above the pivot point and the 50 EMA.

In conclusion, the outlook for USD/CAD remains cautiously bearish below the $1.3661 pivot point. Immediate resistance levels at $1.3687, $1.3705, and $1.3728 could cap any potential upward movements.

On the downside, support levels at $1.3621, $1.3604, and $1.3580 are critical to monitor for signs of further bearish momentum.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Trade Ideas

Entry Price – Sell Below 1.36668

Take Profit – 1.36213

Stop Loss – 1.36876

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$455/ -$208

Profit & Loss Per Mini Lot = +$45/ -$20

USD /CAD

Daily Trade Ideas

USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
May 28, 2024
Usdcad

Daily Price Outlook

- USD/CAD trading at $1.36269, down 0.12%, indicates potential bearish momentum.

- Immediate resistance levels are $1.3643, $1.3662, and $1.3677.

- Immediate support levels are $1.3591, $1.3564, and $1.3537, crucial for maintaining current levels.

USD/CAD is currently trading at $1.36269, reflecting a 0.12% decline on the 4-hour chart. The pivot point, set at $1.3615, is critical for determining the market direction. Immediate resistance levels are $1.3643, $1.3662, and $1.3677. On the downside, immediate support is identified at $1.3591, followed by $1.3564 and $1.3537.

The Relative Strength Index (RSI) is at 38, indicating potential bearish momentum. The 50-day Exponential Moving Average (EMA) is positioned at $1.3650, suggesting that the current price is below this short-term average, reinforcing a bearish outlook.

The outlook for USD/CAD remains bearish below the pivot point of $1.3615. Traders may consider buying above $1.36146, with a take profit target at $1.36521 and a stop loss at $1.35909.

The technical landscape suggests that USD/CAD is under pressure with limited upward momentum unless key resistance levels are breached. The RSI at 38 supports a bearish outlook, while the position below the 50-day EMA at $1.3650 adds to the bearish sentiment.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Trade Ideas

Entry Price – Buy Above 1.36146

Take Profit – 1.36521

Stop Loss – 1.35909

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$375/ -$237

Profit & Loss Per Mini Lot = +$37/ -$23

USD /CAD

Technical Analysis

USD/CAD Price Analysis – May 28, 2024

By LonghornFX Technical Analysis
May 28, 2024
Usdcad

Daily Price Outlook

During the European trading session, the USD/CAD pair has been on a downward trend, edging down to the 1.3620 level. This bearish performance can be attributed to several factors including the bearish US dollar.

Meanwhile, the Canadian Dollar is bolstered by upbeat market sentiment, which contributed to the USD/CAD pair's declines.

Impact of Weakening US Dollar on USD/CAD Pair

On the US front, the broad-based US Dollar is experiencing a weakening trend, even as traders anticipate the Federal Reserve (Fed) to keep interest rates unchanged in their upcoming September meeting. This unexpected decline in the USD's value is influencing the USD/CAD pair's performance, pushing it further down towards the support level of 1.3600.

The market sentiment remains positive, with S&P 500 futures posting gains and the US Dollar dropping for the third consecutive trading session.

Therefore, the weakening trend of the US Dollar, despite expectations of unchanged interest rates by the Fed, is pushing the USD/CAD pair lower towards the 1.3600 support level amid positive market sentiment.

Canadian Dollar Strengthens Amid Upbeat Market Sentiment

On the other hand, the Canadian Dollar (CAD) is gaining strength, capitalizing on the upbeat market sentiment. However, the near-term outlook for the CAD remains uncertain as investors anticipate the Bank of Canada (BoC) to begin interest rate cuts starting from the June meeting. This anticipation is fueled by weak household spending and easing price pressures in Canada.

Additionally, concerns about persistent inflation in Canada have eased due to lackluster consumer spending and a gloomy economic outlook. Investors will closely monitor the upcoming release of Q1 Gross Domestic Product (GDP) data, which will provide insights into the economic health of Canada and potentially impact the performance of the USD/CAD pair.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Technical Analysis

USD/CAD is currently trading at $1.36269, reflecting a 0.12% decline on the 4-hour chart. The pivot point, set at $1.3615, is critical for determining the market direction. Immediate resistance levels are $1.3643, $1.3662, and $1.3677. On the downside, immediate support is identified at $1.3591, followed by $1.3564 and $1.3537.

The Relative Strength Index (RSI) is at 38, indicating potential bearish momentum. The 50-day Exponential Moving Average (EMA) is positioned at $1.3650, suggesting that the current price is below this short-term average, reinforcing a bearish outlook.

The outlook for USD/CAD remains bearish below the pivot point of $1.3615. Traders may consider buying above $1.36146, with a take profit target at $1.36521 and a stop loss at $1.35909.

The technical landscape suggests that USD/CAD is under pressure with limited upward momentum unless key resistance levels are breached. The RSI at 38 supports a bearish outlook, while the position below the 50-day EMA at $1.3650 adds to the bearish sentiment.

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Daily Trade Ideas

USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
May 21, 2024
Usdcad

Daily Price Outlook

- USD/CAD is trading at $1.36380, up 0.09%, indicating slight bullish momentum.

- Immediate resistance levels are $1.3687, $1.3726, and $1.3768; potential hurdles for upward movement.

- Support levels at $1.3589, $1.3552, and $1.3520 are crucial for maintaining the current price structure.

The USD/CAD pair is currently trading at $1.36380, up 0.09% in the 4-hour timeframe. The pivot point is set at $1.3644, serving as a crucial reference for market participants. Immediate resistance levels are identified at $1.3687, $1.3726, and $1.3768. These levels mark potential hurdles for further upward movement, indicating where selling pressure may increase.

On the downside, immediate support is found at $1.3589, with additional support at $1.3552 and $1.3520. These levels are essential for maintaining the current price structure, acting as potential bounce points should the market experience downward pressure.

The Relative Strength Index (RSI) stands at 58, suggesting a moderately bullish sentiment. This indicates that while the market is leaning towards buying, it is not yet overbought, leaving room for potential upward movement.

The 50-day Exponential Moving Average (EMA) is positioned at $1.3619, just below the current price. Trading above this EMA generally signals a bullish trend. Given the current price is above this level, it reinforces the positive outlook for the USD/CAD pair in the near term.

Conclusion: The recommended trading strategy is to set a buy stop at $1.36519, with a take profit target at $1.36881 and a stop loss at $1.36189.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Trade Ideas

Entry Price – Buy Stop 1.36519

Take Profit – 1.36881

Stop Loss – 1.36189

Risk to Reward – 1: 1

Profit & Loss Per Standard Lot = +$362/ -$330

Profit & Loss Per Mini Lot = +$36/ -$33

USD /CAD

Technical Analysis

USD/CAD Price Analysis – May 21, 2024

By LonghornFX Technical Analysis
May 21, 2024
Usdcad

Daily Price Outlook

During the early European session on Tuesday, the USD/CAD currency pair has experienced a bullish performance, edging higher to 1.3630, hitting the intra-day high of 1.3644 level.

This rise is attributed to the modest rebound in the US Dollar, driven by market sentiment and anticipation of more hawkish stances from the Federal Reserve (Fed) officials, who are likely to maintain higher interest rates for an extended period.

This outlook supports the USD, making it more attractive to investors compared to other currencies, including the Canadian Dollar (CAD).

Higher Bets on Rate Cuts from the BoC and Decline in Oil Prices Weigh on the Loonie

On the other hand, the Canadian Dollar, often referred to as the Loonie, has been under pressure due to increasing bets on rate cuts from the Bank of Canada (BoC). Markets are expecting the BoC to cut interest rates 2-3 times before the Federal Reserve's first rate cut. This expectation is bolstered by the forecasted cooling of Canada’s CPI inflation figures.

The Canadian CPI inflation figures for April are anticipated to show further cooling, with expectations of a drop to 2.7% year-on-year from the previous 2.9%, and a decrease to 0.5% month-on-month from 0.6% in March. This cooling of inflation is fueling speculation about potential rate cuts.

Furthermore, the decline in crude oil prices is also contributing to the weakening of the CAD. As Canada is a leading exporter of oil to the United States, lower oil prices reduce revenue from exports, exerting additional selling pressure on the commodity-linked CAD.

Cautious Stance of US Federal Reserve Officials and Its Impact on USD/CAD

On the US front, US Federal Reserve officials have maintained a cautious stance regarding the timing of their monetary easing cycle.

They emphasize the importance of keeping interest rates higher for a longer period to ensure that inflation is effectively managed and on track to meet the Fed’s objectives. This "higher-for-longer" narrative supports the USD, as higher interest rates attract more investment, increasing demand for the currency.

Therefore, the cautious approach of the Fed also helps cap the downside of the USD/CAD pair. Investors and market participants will closely watch upcoming remarks from FOMC members and the Canadian CPI inflation report for further insights into the future movements of this currency pair.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Technical Analysis

The USD/CAD pair is currently trading at $1.36380, up 0.09% in the 4-hour timeframe. The pivot point is set at $1.3644, serving as a crucial reference for market participants. Immediate resistance levels are identified at $1.3687, $1.3726, and $1.3768. These levels mark potential hurdles for further upward movement, indicating where selling pressure may increase.

On the downside, immediate support is found at $1.3589, with additional support at $1.3552 and $1.3520. These levels are essential for maintaining the current price structure, acting as potential bounce points should the market experience downward pressure.

The Relative Strength Index (RSI) stands at 58, suggesting a moderately bullish sentiment. This indicates that while the market is leaning towards buying, it is not yet overbought, leaving room for potential upward movement.

The 50-day Exponential Moving Average (EMA) is positioned at $1.3619, just below the current price. Trading above this EMA generally signals a bullish trend. Given the current price is above this level, it reinforces the positive outlook for the USD/CAD pair in the near term.

Conclusion: The recommended trading strategy is to set a buy stop at $1.36519, with a take profit target at $1.36881 and a stop loss at $1.36189.

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Technical Analysis

USD/CAD Price Analysis – May 14, 2024

By LonghornFX Technical Analysis
May 14, 2024
Usdcad

Daily Price Outlook

During the European trading session, the USD/CAD currency pair has maintained its upward rally and remained well bid around 1.3668 level, hitting the intra-day high of 1.3685 level.

However, the bullish performance of the USD/CAD pair was driven by a combination of factors, including a stronger US dollar supported by a hawkish Fed stance and the lower crude oil prices. Thus, the decline in the crude oil price undermined the commodity-linked Canadian dollar and contributed to the USD/CAD pair gains.

Stronger US Dollar and Hawkish Fed Stance

However, the bullish performance of USD/CAD can be attributed to the strength of the US dollar. Federal Reserve officials have been spoken about adopting a hawkish stance towards monetary policy, emphasizing the necessity of maintaining higher interest rates for an extended period to combat inflationary pressures.

This hawkish stance has fueled investor confidence in the US dollar, consequently exerting upward pressure on the USD/CAD pair.

On the data front, the University of Michigan Consumer Sentiment Index fell to 67.4 in May, its lowest level in six months, below the expected 76 reading. Additionally, the UoM 5-year Consumer Inflation Expectation increased to 3.1%, reaching a six-month high compared to the previous 3.0%.

Hence, the decrease in consumer sentiment suggests lower confidence in the economy, which prompted the Fed to consider tightening monetary policy to stabilize the situation.

Lower Crude Oil Price Weighs on the Commodity-Linked Canadian Dollar (CAD)

Another factor impacting the USD/CAD pair's bullish trend is the decline in crude oil prices, which affects the commodity-linked Canadian dollar (CAD) because Canada is a major exporter of oil to the United States.

Therefore, the decline in crude oil prices has exerted downward pressure on the CAD, counteracting some of its underlying strengths. Even though there is positive Canadian employment data for April, which could theoretically bolster the CAD, the dominant influence of oil prices continues to be a major factor shaping the currency's performance.

Looking ahead, market participants will closely monitor key economic indicators, such as the US Producer Price Index (PPI) and the Consumer Price Index (CPI). Additionally, developments in global oil markets will continue to play a crucial role in shaping the trajectory of the USD/CAD currency pair.

USD/CAD Price Chart - Source: Tradingview
USD/CAD Price Chart - Source: Tradingview

USD/CAD - Technical Analysis

USD/CAD is trading at $1.36768, up 0.08% in the latest session. The 4-hour chart shows a pivot point at $1.3733, a key level for traders to watch. Immediate resistance is just above this pivot at $1.3735, followed by additional resistance levels at $1.3788 and $1.3836. On the downside, immediate support is seen at $1.3614, with further support levels at $1.3562 and $1.3516.

The technical indicators offer further insights into the market dynamics. The Relative Strength Index (RSI) is currently at 46, suggesting a neutral sentiment with no immediate signs of being overbought or oversold.

The 50-day Exponential Moving Average (EMA) stands at $1.3690, slightly above the current price, indicating a potential resistance level that could cap upward movements in the short term.

The trading strategy for USD/CAD involves an entry price for buying above $1.36697, targeting a take-profit level at $1.37334 and a stop loss at $1.36275.

This strategy takes into account the likelihood of the pair testing the immediate resistance level at $1.3735, while also managing risk effectively with a stop loss below the recent support level.

A break above the immediate resistance at $1.3735 could signal further bullish momentum, driving prices towards the next resistance levels at $1.3788 and $1.3836. Conversely, if the price falls below the immediate support at $1.3614, the next support levels at $1.3562 and $1.3516 will be critical for assessing potential downside risks.

Overall, the outlook for USD/CAD remains cautiously bullish above the entry price of $1.36697.

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