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

Daily Price Outlook

- USD/CAD experiences slight growth, showcasing potential for further appreciation with immediate support and resistance levels highlighted.

- Momentum indicators, including a bullish engulfing pattern and RSI, suggest a strong uptrend with the 50-day EMA providing additional support.

- Recommended buying strategy above 1.35498, with defined targets and stop loss to capitalize on the bullish momentum.

The USD/CAD pair has shown resilience, marking a modest increase of 0.12% to 1.35649. This uptick suggests a positive sentiment towards the US dollar against the Canadian dollar, as the pair navigates through key technical levels. The currency's pivotal point is located at 1.3525, serving as a fundamental marker for the pair's short-term direction. Resistance levels are established at 1.3591, 1.3624, and 1.3647, marking potential hurdles for upward movements. Conversely, support is found at 1.3486, with additional levels at 1.3456 and 1.3421, where the pair might find buying interest.

A noteworthy observation comes from the RSI at 64, indicating momentum leaning towards the overbought territory but still suggesting room for further gains. The emergence of a bullish engulfing candlestick pattern above the 1.3550 level reinforces the prospect of a continuing uptrend. Furthermore, the 50-day EMA at 1.3519, now below the current price, acts as a support level, bolstering the bullish case for the USD/CAD pair.

Given these dynamics, a strategic entry for a long position is advised above 1.35498, targeting a move towards 1.35913 for potential profits. A stop loss at 1.35173 is recommended to mitigate risk, aligning with a prudent trading strategy.

USD/CAD - Trade Ideas

Entry Price – Buy Above 1.35498

Take Profit – 1.35913

Stop Loss – 1.35173

Risk to Reward – 1: 1.28

Profit & Loss Per Standard Lot = +$415/ -$325

Profit & Loss Per Mini Lot = +$41/ -$32