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

Daily Price Outlook

- Momentum Near Overbought Zone: RSI at 61 indicates bullish momentum, but a reversal may occur if resistance levels hold.

- Key Support at $1.34900: Critical support just above the 50-EMA could act as a floor, preventing deeper declines.

- Resistance at $1.35440 in Focus: A break above this immediate resistance is needed to confirm bullish continuation.

The U.S. dollar is holding steady against the Canadian dollar, with the USD/CAD pair currently trading at $1.35264, a marginal dip of 0.01% as traders await key economic data releases.

The pair is hovering near its pivot point of $1.35174, which suggests that the market is seeking directional clarity amid fluctuating crude oil prices and shifts in U.S. interest rate expectations.

With the pair’s Relative Strength Index (RSI) sitting at 61, momentum is slightly in favor of the bulls, but the market is approaching overbought territory, which could cap any immediate upside movement.

Immediate resistance is noted at $1.35440, a level that aligns with recent highs and may act as a short-term barrier for further gains. A break above this resistance would pave the way for the next upside targets at $1.35811 and $1.36118.

On the downside, immediate support stands at $1.34900, followed by $1.34631, which coincides closely with the 50-day Exponential Moving Average (EMA) at $1.34861.

A sustained move below these levels would likely trigger additional selling pressure, driving the pair towards the lower support at $1.34328.

The technical landscape suggests a potential buy setup above the $1.35150 mark, with a take-profit target at $1.35500 and a stop-loss at $1.34900.

As long as the pair remains above the 50-EMA, the bias is slightly bullish, with buyers likely to defend the key $1.34900 support level.

USD/CAD - Trade Ideas

Entry Price – Buy Above 1.35150

Take Profit – 1.35500

Stop Loss – 1.34900

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$350/ -$250

Profit & Loss Per Mini Lot = +$35/ -$25