USD/CAD Price Analysis: Prepares for a fresh rally above 1.3360 ahead of US CPI and Fed policy


  • USD/CAD is gathering strength for a fresh upside move above 1.3360 as the focus shifts to US CPI and Fed policy.
  • The US Dollar Index (DXY) has deliberating reached to near 103.70 as investors are divided about Fed’s policy decision.
  • USD/CAD has witnessed decent buying interest after testing the demand zone plotted in a narrow range of 1.3300-1.3315.

The USD/CAD pair is gathering strength for a fresh rally around 1.3350 ahead of the release of the United States Consumer Price Index (CPI) and the interest rate decision by the Federal Reserve (Fed). The Loonie asset is expected to remain in the bullish trajectory as anxiety among investors is deepening due to critical economic events.

S&P500 futures have posted decent gains in the Asian session. US equities remained choppy on Friday but managed to settle on a positive note. The overall market sentiment is risk-on, however, mild caution cannot be ruled out.

The US Dollar Index (DXY) has deliberating reached to near 103.70 as investors are divided about Fed’s policy decision. No doubt, United States labor market conditions are easing, the current inflation rate is more than twice the desired rate.

USD/CAD has witnessed decent buying interest after testing the demand zone plotted in a narrow range of 1.3300-1.3315 on a four-hour scale. The 20-period Exponential Moving Average (EMA) at 1.3363 is still acting as a barricade for the US Dollar bulls. Horizontal resistance is plotted around June 05 high at 1.3462.

The Relative Strength Index (RSI) (14) has tried to ditch the bearish range of 20.00-40.00 and enter into the 40.00-60.00 range, indicating an attempt of a bullish reversal.

Should the asset break above June 08 high at 1.3388, US Dollar bulls will drive the asset toward June 05 high at 1.3462 and the psychological resistance at 1.3500.

On the flip side, a breakdown below the round-levels support of 1.3300 will expose the Loonie asset to a fresh four-month low around 1.3274 followed by 15 November 2022 low at 1.3226.

USD/CAD four-hour chart

USD/CAD

Overview
Today last price 1.3354
Today Daily Change 0.0016
Today Daily Change % 0.12
Today daily open 1.3338
 
Trends
Daily SMA20 1.3492
Daily SMA50 1.3488
Daily SMA100 1.3515
Daily SMA200 1.3514
 
Levels
Previous Daily High 1.3371
Previous Daily Low 1.3313
Previous Weekly High 1.3462
Previous Weekly Low 1.3313
Previous Monthly High 1.3655
Previous Monthly Low 1.3315
Daily Fibonacci 38.2% 1.3335
Daily Fibonacci 61.8% 1.3349
Daily Pivot Point S1 1.331
Daily Pivot Point S2 1.3283
Daily Pivot Point S3 1.3252
Daily Pivot Point R1 1.3368
Daily Pivot Point R2 1.3399
Daily Pivot Point R3 1.3426

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD flirts with 1.0500 on mixed US PMI readings

EUR/USD flirts with 1.0500 on mixed US PMI readings

 The bullish momentum remains unchanged around EUR/USD on Friday as the pair keeps its trade close to the area of multi-week highs around the 1.0500 barrier in the wake of the release of mixed results from the preliminary US Manufacturing and Services PMIs for the current month. 

EUR/USD News
GBP/USD challenges recent peaks near 1.2450

GBP/USD challenges recent peaks near 1.2450

GBP/USD pushes harder and puts the area of recent two-week highs near 1.2450 to the test on the back of the intense sell-off in the Greenback, while the British pound also derives extra strength from earluer auspicious prints from advanced UK Manufacturing and Services PMIs.

GBP/USD News
Gold keeps the bid bias near its all-time high

Gold keeps the bid bias near its all-time high

Gold prices maintain the bid tone near their record top at the end of the week, helped by the intense weakness around the US Dollar, alleviating concerns surrounding Trump's tariff narrarive, and a somewhat more flexible stance towards China.

Gold News
Dogelon Mars pumps more than 85%, whales dump 128 billion coins and realize a profit

Dogelon Mars pumps more than 85%, whales dump 128 billion coins and realize a profit

Dogelon Mars (ELON) price continues its rally on Friday after rallying more than 18% this week. On-chain data shows that ELON whale wallets realized profits during the recent surge. The technical outlook suggests a rally continuation of the dog-theme meme coin, targeting double-digit gains ahead.

Read more
ECB and US Fed not yet at finish line

ECB and US Fed not yet at finish line

Capital market participants are expecting a series of interest rate cuts this year in both the Eurozone and the US, with two interest rate cuts of 25 basis points each by the US Federal Reserve and four by the European Central Bank (ECB).

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures