Daily Price Outlook

- USD/CAD rises to 1.34723, showing strength above pivot point 1.3399.

-RSI nears overbought at 68, with MACD suggesting upward momentum.

-Technical analysis supports a bullish strategy with defined entry, profit, and stop loss points.

On January 16th, the USD/CAD pair showed a positive trend, gaining 0.34% to reach 1.34723. The 4-hour chart highlights a key pivot point at 1.3399, with the pair encountering immediate resistance at 1.3456, followed by 1.3500 and 1.3555. On the support front, levels are established at 1.3353, 1.3294, and 1.3248.

The technical indicators for USD/CAD present a bullish outlook. The Relative Strength Index (RSI) is at 68, nearing the overbought territory but still indicative of strong buying interest. The Moving Average Convergence Divergence (MACD) shows a value of 0.001, with the signal line at 0.00216, suggesting a potential upward momentum. The 50-day Exponential Moving Average (EMA) is currently at 1.3431, which the pair has recently surpassed, reinforcing the bullish sentiment.

A notable chart pattern is the breakout from a downward trendline, indicating a shift towards a buying trend. Given these technical insights, the short-term forecast for USD/CAD appears bullish. Traders might consider a buy limit at 1.34430, aiming for a take profit at 1.35133, with a stop loss set at 1.34037. This strategy banks on the expectation that the pair will test and potentially break through the upcoming resistance levels.

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

USD/CAD - Trade Idea 

Entry Price – Buy Limit 1.34430

Take Profit – 1.35133

Stop Loss – 1.34037

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$703/ -$393

Profit & Loss Per Mini Lot = +$70/ -$39



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