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

Daily Price Outlook

- USD/CAD trades just below the key pivot point at $1.3748, signaling potential bearish momentum.

- Immediate resistance at $1.3789 aligns with the 50-day EMA; failure to break could confirm a downward trend.

- Support is at $1.3688; breaking this level may accelerate selling pressure.

The USD/CAD pair is currently trading at $1.37326, down 0.02% on the 4-hour chart, showing a slight decline as it hovers just below the pivot point at $1.3748.

This level is crucial as it represents a potential turning point for the pair. If USD/CAD fails to break above this pivot, we might see further bearish movement.

The immediate resistance is at $1.3789, aligned with the 50-day Exponential Moving Average (EMA) at $1.3788.

This area is a key resistance zone; a break above it could shift the momentum back to the bulls.

However, if the pair continues to trade below this resistance, the bearish outlook remains strong.

The next resistance levels are at $1.3841 and $1.3890, but these will only come into play if the pair manages to climb above $1.3789.

On the downside, immediate support is found at $1.3688, with further support levels at $1.3645 and $1.3603.

The Relative Strength Index (RSI) is at 41, suggesting there’s room for more downside before the pair becomes oversold.

Given the current technical setup, selling below $1.37475 with a target of $1.3688 and a stop loss at $1.37834 seems to be a sound strategy.

The market's inability to clear the 50-day EMA indicates that sellers are likely to maintain control in the short term.

USD/CAD - Trade Ideas

Entry Price – Sell Below 1.37475

Take Profit – 1.28008

Stop Loss – 1.27173

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$593/ -$359

Profit & Loss Per Mini Lot = +$59/ -$35