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

Daily Price Outlook

- Bearish Sentiment: USD/CAD below $1.39210 pivot, with bearish pressure intact.

- 50 EMA Resistance: The $1.39120 level acts as resistance, sustaining downward bias.

- Sell Strategy: Entry below $1.38931, targeting $1.38629 with a stop loss at $1.39140 to manage upside risk.

The USD/CAD pair is trading at $1.38862, down by 0.12% in the latest session, as it encounters downward pressure near key technical levels. Currently, the pair is testing a critical pivot at $1.39210, which defines its short-term direction.

The Relative Strength Index (RSI) stands at 36, edging towards the oversold zone, indicating that the bearish momentum may be close to exhaustion, though a further drop remains possible.

Immediate resistance is positioned at $1.39349, with further upside barriers at $1.39489. A push above these levels could shift sentiment to a more bullish outlook, targeting higher grounds. However, the 50-day Exponential Moving Average (EMA) at $1.39120 serves as a key point of overhead resistance, reinforcing a bearish bias below this level.

On the support side, the first major support lies at $1.38789, with additional safety nets at $1.38635 and $1.38447. Should USD/CAD break below the $1.38789 support level, it could accelerate selling pressure, possibly driving the pair lower.

For now, the market favors a bearish stance, with a recommended entry below $1.38931, targeting $1.38629 for profit-taking while setting a stop loss at $1.39140 to manage potential risks.

Overall, USD/CAD remains in a downtrend, with key levels to watch on both sides. A break below immediate support could further solidify the bearish trend, while any recovery above the 50 EMA may indicate a potential reversal.

USD/CAD - Trade Ideas

Entry Price – Sell Below 1.38931

Take Profit – 1.38629

Stop Loss – 1.39140

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$302/ -$209

Profit & Loss Per Mini Lot = +$30/ -$20