-
USDCAD holds short-term range ahead of ISM manufacturing PMI.
-
Bulls lose power but not the battle, uptrend intact above 1.4260.
USDCAD is holding steady within the tight three-week-old range of 1.4350-1.4400 despite a brief rise to 1.4465 in the first trading day of 2025.
Technical indicators point to weakening buying sentiment, with the MACD decelerating below its red signal line and the RSI retreating from overbought territory. Despite this, the price seems to be forming a descending triangle at the top of its three-month-old uptrend, a pattern typically signaling continued bullish movement. Supporting this view, the exponential moving averages (EMAs) show a positive slope.
For a clearer bullish signal, the pair needs a close above 1.4400 and perhaps a sustainable move above the critical resistance zone of 1.4465-1.4500 before reaching the 2020 high of 1.4667. This is near the 2016 top of 1.4689, a break of which could open the door for the 1.4800 barrier last seen in 2003.
Alternatively, a slide below the 1.4350 floor could instantly pause near the 20-day EMA at 1.4300 or around the support trendline at 1.4260. If the 23.6% Fibonacci retracement of the September-December uptrend at 1.4218 fails too, the price could slide toward the 50-day EMA at 1.4125.
All in all, USDCAD is in a wait and see mode. A clear move above 1.4400 could trigger the next bull run, whilst a drop below 1.4350 may activate selling orders.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains near 1.0300 after US PMI data
EUR/USD trades in positive territory at around 1.0300 on Friday. The pair breathes a sigh of relief as the US Dollar rally stalls, even as markets stay cautious amid geopolitical risks and Trump's tariff plans. US ISM PMI improved to 49.3 in December, beating expectations.
GBP/USD holds around 1.2400 as the mood improves
GBP/USD preserves its recovery momentum and trades around 1.2400 in the American session on Friday. A broad pullback in the US Dollar allows the pair to find some respite after losing over 1% on Thursday. A better mood limits US Dollar gains.
Gold retreats below $2,650 in quiet end to the week
Gold shed some ground on Friday after rising more than 1% on Thursday. The benchmark 10-year US Treasury bond yield trimmed pre-opening losses and stands at around 4.57%, undermining demand for the bright metal. Market players await next week's first-tier data.
Stellar bulls aim for double-digit rally ahead
Stellar extends its gains, trading above $0.45 on Friday after rallying more than 32% this week. On-chain data indicates further rally as XLM’s Open Interest and Total Value Locked rise. Additionally, the technical outlook suggests a rally continuation projection of further 40% gains.
Week ahead – US NFP to test the markets, Eurozone CPI data also in focus
King Dollar flexes its muscles ahead of Friday’s NFP. Eurozone flash CPI numbers awaited as euro bleeds. Canada’s jobs data to impact bets of a January BoC cut. Australia’s CPI and Japan’s wages also on tap.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.