empty
02.04.2025 12:22 PM
USD/CAD. Analysis and Forecast

This image is no longer relevant

Today, the USD/CAD pair is trying to stop its previous fall, attempting to anchor above the 1.4300 level. The anticipated announcement on tariffs from U.S. President Donald Trump, expected during the North American session, is creating uncertainty, and traders are likely to stay on the sidelines, waiting to see how the market reacts.

The potential weakness of the Canadian dollar due to new U.S. tariffs is indeed a significant factor. However, the recent rise in oil prices—which traditionally supports the commodity-linked Canadian dollar—may help balance out the negative impact. Interestingly, expectations of rate cuts from the Federal Reserve are also capping the growth of the U.S. dollar, creating a complex situation for the USD/CAD pair and restraining the bulls.

From a technical standpoint, support at the 100-day Simple Moving Average (SMA) is an important level to watch. However, before taking aggressive short positions, it would be prudent to wait for a sustained break and acceptance below the round 1.4300 level. A subsequent decline could drag the pair down toward last week's swing low near 1.4235, with vulnerability extending below the 1.4200 psychological mark. A decisive break below this area could act as a new trigger for sellers, especially since the RSI (Relative Strength Index) has just begun to shift into negative territory.

On the other hand, any further upward move will face resistance at the 50-day SMA and the 1.4350 level. A break above that could trigger a round of short-covering, allowing the pair to reclaim the 1.4400 handle. Further buying interest may open the way toward intermediate resistance near 1.4440–1.4445, with scope for additional gains toward the 1.4480 zone and the key psychological level of 1.4500 and beyond.

However, as long as oscillators remain below 50, the path of least resistance for the pair continues to point to the downside.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY: Simple Trading Tips for Beginner Traders on April 9. Review of Yesterday's Forex Trades

The test of the 147.13 price level occurred just as the MACD indicator began moving upward from the zero line, confirming a valid entry point for buying the dollar

Jakub Novak 08:45 2025-04-09 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on April 9. Review of Yesterday's Forex Trades

The test of the 1.2786 price level occurred when the MACD indicator had already moved significantly above the zero line, which limited the pair's upside potential. The second test

Jakub Novak 08:44 2025-04-09 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on April 9. Review of Yesterday's Forex Trades

The first test of the 1.0913 price level occurred when the MACD indicator moved significantly below the zero line, limiting the pair's downside potential. For this reason

Jakub Novak 08:44 2025-04-09 UTC+2

Intraday Strategies for Beginner Traders on April 9

The euro and the pound held their ground under renewed selling pressure and even posted slight gains during today's Asian session. Yesterday's weak data from the NFIB Small Business Optimism

Miroslaw Bawulski 08:09 2025-04-09 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair has been trying to regain positive momentum for the second consecutive day, halting the recent pullback from the monthly high levels last seen in September. From

Irina Yanina 19:44 2025-04-08 UTC+2

USD/JPY: Simple trading tips for beginner traders on April 8th (U.S. session)

Trade breakdown and trading tips for the Japanese yen The test of the 147.47 level occurred when the MACD indicator had just begun to move downward from the zero line

Jakub Novak 19:42 2025-04-08 UTC+2

GBP/USD: Simple trading tips for beginner traders on April 8th (U.S. session)

Trade breakdown and trading tips for the British pound The test of the 1.2792 level occurred at a moment when the MACD indicator had already moved far above the zero

Jakub Novak 19:39 2025-04-08 UTC+2

EUR/USD: Simple trading tips for beginner traders on April 8th (U.S. session)

Trade breakdown and tips for trading the euro The test of the 1.0984 level coincided with the moment when the MACD indicator had already moved far above the zero line

Jakub Novak 19:37 2025-04-08 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on April 8. Review of Yesterday's Forex Trades

The price test at 146.93 occurred when the MACD indicator had already moved far above the zero line, which limited the pair's upward potential. The second test of 146.93 coincided

Jakub Novak 09:02 2025-04-08 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on April 8. Review of Yesterday's Forex Trades

The price test of 1.2793 occurred when the MACD indicator moved significantly below the zero mark, limiting the pair's downside potential. A second test of 1.2793 while MACD

Jakub Novak 09:02 2025-04-08 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.