- USD/CAD is steadily channeling higher on US Dollar strength.
- Underneath price lie the three most important Moving Averages providing a safety net.
- Price is marginally biased to continue rising within the bullish channel.
USD/CAD is broadly channeling higher on the daily chart as the US Dollar (USD) steadily appreciates against the Canadian Dollar (CAD).
The range stretches from around the 1.3600s to the 1.3400s at the moment, although it is incrementally slanting higher.
US Dollar versus Canadian Dollar: Daily chart
USD/CAD is currently trading plum in the middle of the channel as it seesaws between tepid gains and losses.
Given the bullish slant to the channel there is a slight but not significant bias for more upside and the pair could rise to the top of the channel at roughly 1.3675.
Clustering just beneath price action around the 1.3500 level are the three most important Moving Averages – the 50, 100 and 200-day (Simple Moving Averages). These are key because they are not only followed by private investors but also institutional players.
Additionally, on the chart of USD/CAD it is notable how price action has respected the support cushion provided by these SMAs on several occasions during the formation of the channel.
A move down from the current level in the mid 1.3500s will find support at the first SMA, the 50-day, at 1.3512, and probably bounce. Even if it penetrates below it is likely to find support from the 200-day SMA at 1.3502.
If it gets through all three SMAs the bottom of the channel comes in with further support at roughly 1.3470.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes around 1.2550 after hitting two-year lows
EUR/USD plunged to 1.0223, its lowest in over two years, as risk aversion fueled demand for the US Dollar. Thin post-holiday trading exacerbated the movements, with financial markets slowly returning to normal.
USD/JPY flirts with multi-month highs in the 158.00 region
The USD/JPY pair traded as high as 157.84 on Thursday, nearing the December multi-month high of 158.07. Additional gains are on the docket amid prevalent risk aversion.
Gold retains the $2,650 level as Asian traders reach their desks
Gold gathered recovery momentum and hit a two-week-high at $2,660 in the American session on Thursday. The precious metal benefits from the sour market mood and looks poised to extend its advance ahead of the weekly close.
These 5 altcoins are rallying ahead of $16 billion FTX creditor payout
FTX begins creditor payouts on January 3, in agreement with BitGo and Kraken, per an official announcement. Bonk, Fantom, Jupiter, Raydium and Solana are rallying on Thursday, before FTX repayment begins.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
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.