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

Daily Price Outlook

- Moderate Bullish Momentum: RSI at 61 suggests mild bullish sentiment, with potential for further upside.

- Support Holds Firm: The 50-day EMA at 1.35891 acts as a critical support, maintaining the bullish trend.

- Crucial Resistance Levels: A breakout above 1.36390 is needed to confirm a bullish continuation toward 1.36612.

USD/CAD is trading at 1.36216, maintaining a neutral stance in a narrow range just above its pivot point at 1.36129. The pair is showing resilience as it struggles to break above the immediate resistance level at 1.36390. A sustained move above this level could signal a continuation of the recent bullish trend, with further resistance targets at 1.36612 and 1.36833.

The pair’s Relative Strength Index (RSI) is currently at 61, indicating mild bullish momentum. This suggests that there is still some room for upside movement before USD/CAD enters overbought territory. Supporting this view, the 50-day Exponential Moving Average (EMA) is positioned at 1.35891, providing a key support level that has been consistently holding up in recent sessions.

On the downside, the immediate support at 1.35905 is crucial for maintaining the short-term bullish bias. If prices fall below this support, the pair could see further declines towards 1.35686 and potentially down to 1.35461, where stronger buying interest may emerge.

Given the current technical setup, a break above 1.36390 could pave the way for further gains, targeting the 1.36612 level in the short term. Conversely, a fall below 1.35905 may trigger a bearish reversal. For now, maintaining a cautious long position above 1.36127 with a take-profit target at 1.36523 and a stop-loss at 1.35964 is advised.

USD/CAD - Trade Ideas

Entry Price – Buy Above 1.36127

Take Profit – 1.36523

Stop Loss – 1.35964

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$396/ -$163

Profit & Loss Per Mini Lot = +$39/ -$16