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

Daily Price Outlook

The USD/CAD pair has seen a decline of nearly 0.75% since the opening on Monday, with the current price at 1.3585. This movement reflects the dynamics of the US Dollar (USD) against the Canadian Dollar (CAD) and has implications for traders and investors.

Analyzing the 4-hour chart, the pivot point is at 1.3645, serving as a critical reference point. Immediate resistance levels include 1.3557, followed by 1.3500 and 1.3421. These levels represent significant barriers that may influence price action. On the support side, immediate levels are at 1.3698, with subsequent support at 1.3789 and 1.3852, indicating potential areas for reversals or continuations.

Examining technical indicators, the Relative Strength Index (RSI) registers at 34, suggesting a relatively bearish sentiment in the market. The 50-Day Exponential Moving Average (50 EMA) stands at 1.3630, indicating that the price is currently below this level, aligning with a short-term bearish trend.

One notable chart pattern is the bearish sentiment below the pivot point at 1.3645. Traders should also pay attention to the 1.3556 level, which represents the 61.8% Fibonacci retracement level. This level can act as a critical support or resistance point, depending on the price movement.

In conclusion, the overall trend for USD/CAD appears bearish, especially below the pivot point at 1.3645. Traders should closely monitor this key level for potential trading opportunities in the coming days. The short-term forecast suggests the possibility of testing the resistance at 1.3557 and beyond.

USD/CAD - Trade Idea

Entry Price – Sell Limit 1.3645

Take Profit – 1.3499

Stop Loss – 1.3714

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$1341/ -$826

Profit & Loss Per Micro Lot = +$134/ -$82