13.03.202519:11 Forex Analysis & Reviews: USD/CAD: Analysis and Forecast

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Today, USD/CAD is attempting a recovery following its recent decline, attracting buyers around 1.4350. Spot prices have climbed toward the 1.4400 round level, allowing the pair to recoup some of the previous day's losses. However, several factors could limit any significant upside for the pair.

The Canadian dollar remains under pressure due to the Bank of Canada's seventh consecutive rate cut and the escalation of the U.S.-Canada trade war. This creates a negative backdrop, especially as there have been no follow-up crude oil purchases after yesterday's rally, which typically influences CAD. At the same time, bearish sentiment toward the U.S. dollar, driven by expectations of Federal Reserve rate cuts, also caps USD/CAD's gains.

Technical Outlook

The pair struggles to break above the 1.4400 round level. However, oscillators on the daily chart remain positive, and the nearest support lies at the 50-period simple moving average (SMA) near 1.4353. A sustained break below this level could trigger aggressive selling, paving the way for deeper losses. The next target would be 1.4300, followed by 1.4215 (where the 100-day SMA is located) and 1.4200.

On the other hand, a decisive breakout above 1.4400 and sustained momentum beyond this level would reopen the path toward the psychological level of 1.4500, with resistance at 1.4450. This would allow USD/CAD to test its monthly high at 1.4520. Further buying interest could lift the price toward the 1.4600 round level and beyond.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.