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

Daily Price Outlook

- USD/CAD breaks above $1.3502, signaling potential for further gains.

- RSI at 60.80 indicates increasing bullish momentum.

- Key resistance at $1.3549 aligns with the 61.8% Fibonacci retracement level.

The USD/CAD pair is currently trading around $1.3525, showing signs of a potential bullish reversal after a period of decline. The pair has recently broken above the 50-day EMA, which is now acting as immediate support around $1.3502, suggesting a shift in momentum. The current price action indicates that if the pair maintains this level, it could extend gains towards higher resistance levels.

Key resistance levels to watch include $1.3549, which aligns with the 61.8% Fibonacci retracement level, followed by $1.3577 and $1.3614. These levels represent critical barriers where selling pressure could re-emerge. On the downside, immediate support lies at $1.3502 (pivot point), with further support levels at $1.3482 and $1.3447.

Technical indicators are favoring a continuation of the bullish trend. The RSI is currently at 60.80, reflecting the increasing buying momentum as the pair approaches overbought territory. The 50-day EMA at $1.3502 provides a critical support zone, and a close above this level would further validate the bullish outlook.

Given the recent breakout above key levels, a buy position above $1.3507 could be considered, targeting $1.3561 with a stop loss at $1.3470 to manage potential downside risk.

The overall sentiment is cautiously optimistic, with the potential for further gains if the pair sustains above the $1.3502 pivot point.

USD/CAD - Trade Ideas

Entry Price – Buy Above 1.35076

Take Profit – 1.35614

Stop Loss – 1.34706

Risk to Reward – 1: 1.45

Profit & Loss Per Standard Lot = +$538/ -$370

Profit & Loss Per Mini Lot = +$53/ -$37