Daily Price Outlook

- USD/CAD trades slightly higher at 1.3340, hinting at a cautious bullish trend.

- Key resistance at 1.3335 and 1.3430; support at 1.3156 and 1.3089.

- Double top pattern at 1.3395 suggests a watchful approach for further price action.

As of Tuesday, January 9, the USD/CAD pair is exhibiting a slight upward movement, trading at 1.3340, a 0.05% increase from the previous day. This subtle rise reflects a cautiously optimistic market sentiment towards the US Dollar against the Canadian Dollar.

In the current market scenario, the USD/CAD pair navigates through a series of technical levels that define its potential path. The pivot point for the pair is set at 1.3265. Resistance levels are identified at 1.3335, followed by higher ceilings at 1.3430 and 1.3504, which could act as barriers to further upward movements. On the flip side, the pair finds immediate support at 1.3156, with subsequent support levels at 1.3089 and 1.3022, offering potential safety nets in case of a downtrend.

The Relative Strength Index (RSI) for the pair stands at 53, indicating a marginally bullish sentiment, yet not overly so. The Moving Average Convergence Divergence (MACD) records a value of -0.0005 with a signal line at 0.00148, suggesting a mixed outlook with no clear directional momentum. The current trading price is just below the 50-Day Exponential Moving Average (EMA) of 1.3360, indicating a neutral to slightly bearish short-term trend.

The USD/CAD pair shows a double top pattern extending resistance at 1.3395, a critical level that traders are monitoring closely. This pattern typically suggests a potential reversal or a pause in the upward momentum, warranting caution among investors.

Considering the above technical analysis, the overall trend for USD/CAD appears cautiously optimistic but remains neutral. For traders, a prudent strategy might involve initiating a buy position above 1.33432, targeting profits at 1.34481, and placing a stop loss at 1.33067. This approach takes into account the current technical landscape, with an emphasis on the near-term resistance and support levels.

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

USD/CAD - Trade Idea 

Entry Price – Buy Above 1.33432

Take Profit – 1.34481

Stop Loss – 1.33067

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$1049/ -$365

Profit & Loss Per Mini Lot = +$104/ -$36



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