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

Daily Price Outlook

- USD/CAD stable at $1.36888, nearing overbought conditions with RSI at 65.

- Key resistance at $1.3720; support levels at $1.3672, $1.3653, $1.3629.

- 50-day EMA at $1.3634 supports bullish trend; cautious buying recommended above $1.36783.

The USD/CAD pair is currently trading at $1.36888, showing negligible movement from the previous session. The 4-hour chart delineates significant price levels, with the pivot point situated at $1.3692.

Immediate resistance is noted at $1.3720, followed by $1.3756 and $1.3782. On the downside, immediate support lies at $1.3672, with further support levels at $1.3653 and $1.3629.

The Relative Strength Index (RSI) is positioned at 65, indicating the pair is approaching overbought conditions. This suggests potential caution for traders as the pair nears resistance levels.

The 50-day Exponential Moving Average (EMA) is recorded at $1.3634, which acts as a critical support level, indicating the overall bullish trend remains intact if the price stays above this mark.

The recent stability in the USD/CAD can be attributed to mixed economic signals from both the U.S. and Canada. While the U.S. economy shows robust performance, bolstered by positive economic indicators and speculation about future rate hikes, the Canadian dollar is supported by strong commodity prices, particularly oil, which is a significant export for Canada.

Traders considering positions in the USD/CAD pair should look to buy above $1.36783, with a take-profit target at $1.37133 and a stop-loss set at $1.36591. This strategy leverages the current bullish sentiment while protecting against potential downside risks.

USD/CAD - Trade Ideas

Entry Price – Buy Above 1.36783

Take Profit – 1.37133

Stop Loss – 1.36591

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$350/ -$192

Profit & Loss Per Mini Lot = +$35/ -$19