-
USD/CAD is in recovery mode but not out of the woods.
-
Resistance within short distance at 1.4430-1.4465.
-
Bank of Canada expected to lower interest rates.
USDCAD has been in a gradual recovery phase over the past week, resuming its sideways structure from mid-December after a temporary drop to 1.4259.
With the clock ticking down to the BoC policy announcement (14:45 GMT), which could reveal the sixth consecutive reduction to 3.0%, investors are wondering whether the bulls can lift the pair beyond its four-year high of 1.4484.
The upturn in the RSI and the stochastic oscillator looks promising, though the broken support trendline from September, which is now acting as resistance near 1.4430, remains a struggle. The upper band of the rectangle seen around 1.4465 will be closely watched as well. A break above this zone could trigger a surge towards the 2020 and 2016 highs encapsulated within the 14650-1.4700 zone, with the next major target seen near the constraining ascending line around 1.4780-1.4800.
In the event of a backward flip, the 20-day exponential moving average (EMA) at 1.4360 could provide a cushion ahead of the 1.4255-1.4290 area, which includes the 50-day EMA and the 23.6% Fibonacci retracement of the September-January uptrend. A step lower could signal a potential negative trend reversal, prompting a swift decline towards 1.4100.
For now, USDCAD is holding a neutral bias, with traders waiting for either a decisive move above 1.4430-1.4465 or below 1.4255-1.4290 to drive the pair accordingly.
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 hits two-week tops near 1.0500 on poor US Retail Sales](https://editorial.fxsstatic.com/images/i/EURUSD-neutral-line_Medium.png)
EUR/USD hits two-week tops near 1.0500 on poor US Retail Sales
The selling pressure continues to hurt the US Dollar and now encourages EUR/USD to advance to new two-week peaks in levels just shy of the 1.0500 barrier in the wake of disappointing results from US Retail Sales.
![GBP/USD surpasses 1.2600 on weaker US Dollar](https://editorial.fxsstatic.com/images/i/GBPUSD-neutral-object-1_Medium.png)
GBP/USD surpasses 1.2600 on weaker US Dollar
GBP/USD extends its march north and reclaims the 1.2600 hurdle for the first time since December on the back of the increasing downward bias in the Greenback, particularly exacerbated following disheartening US results.
![Gold maintains the bid tone near $2,940](https://editorial.fxsstatic.com/images/i/Commodities_Gold-2_Medium.jpg)
Gold maintains the bid tone near $2,940
The continuation of the offered stance in the Greenback coupled with declining US yields across the board underpin the extra rebound in Gold prices, which trade at shouting distance from their record highs.
![Weekly wrap: XRP, Solana and Dogecoin lead altcoin gains on Friday](https://editorial.fxsstatic.com/images/i/DOGE-neutral-object_Medium.png)
Weekly wrap: XRP, Solana and Dogecoin lead altcoin gains on Friday
XRP, Solana (SOL) and Dogecoin (DOGE) gained 5.91%, 2.88% and 3.36% respectively on Friday. While Bitcoin (BTC) hovers around the $97,000 level, the three altcoins pave the way for recovery and rally in altcoins ranking within the top 50 cryptocurrencies by market capitalization on CoinGecko.
![Tariffs likely to impart a modest stagflationary hit to the economy this year](https://editorial.fxsstatic.com/images/i/Economic-Indicator_GDP-3_Medium.png)
Tariffs likely to impart a modest stagflationary hit to the economy this year
The economic policies of the Trump administration are starting to take shape. President Trump has already announced the imposition of tariffs on some of America's trading partners, and we assume there will be more levies, which will be matched by foreign retaliation, in the coming quarters.
![The Best Brokers of the Year](https://editorial.fxsstatic.com/images/Brokers/Editors_Pick_Box_395x179_Medium.png)
The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.