USD/CAD Price Forecast: Remains depressed around 1.4430-1.4425; downside seems limited

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

USD/CAD ticks lower on Friday, though it lacks follow-through and manages to hold above 1.4400.


The optimism over US-Canada trade talks exerts pressure, while a modest USD uptick lends support.


The range-bound price action also warrants some caution before placing aggressive directional bets.


The USD/CAD pair struggles to capitalize on the previous day's positive move and trades with a mild negative bias during the Asian session on Friday. Spot prices, however, manage to hold above the 1.4400 mark amid a modest US Dollar (USD) uptick, though the upside seems capped amid some positive news coming out of the US-Canada trade talks on Thursday.


Moreover, expectations that the Federal Reserve (Fed) will cut interest rates several times this year amid worries about a tariff-driven US economic slowdown, signs of easing inflationary pressure, and a cooling labor market might limit the USD gains. Apart from this, an uptick in Crude Oil prices could underpin the commodity-linked Loonie and further contribute to keeping a lid on the USD/CAD pair. 


Meanwhile, spot prices, barring a knee-jerk spike on Tuesday, have been oscillating in a range since the beginning of this week. This comes on top of the recent repeated failures to find acceptance above the 1.4500 psychological mark and warrants some caution for bullish traders. However, positive technical indicators on the daily chart support prospects for an eventual breakout to the upside. 


From current levels, the 1.4470-1.4475 region could act as an immediate hurdle ahead of the 1.4500 mark and the weekly swing high, around the 1.4520 area. This is followed by the monthly top, around the 1.4545 zone, above which the USD/CAD pair could reclaim the 1.4600 mark and climb further to the 1.4670 region en route to 1.4700 and the 1.4800 neighborhood, or over a two-decade high.


On the flip side, weakness below the 1.4400 round figure could find some support near the 1.4355-1.4350 area. A convincing break below could drag the USD/CAD pair to the 1.4300 mark en route to the monthly low, around the 1.4240-1.4235 region. This is followed by the 100-day Simple Moving Average (SMA), currently pegged near the 1.4215 area, which should act as a strong base. 


USD/CAD 4-hour chart


fxsoriginal

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
USD/CAD climbs to multi-week top, closer to mid-1.3900s amid sustained USD buyingThe USD/CAD pair is seen building on this week's recovery from the year-to-date low, around mid-1.3700s, and gaining positive traction for the third successive day on Friday.
Author  FXStreet
2 hours ago
The USD/CAD pair is seen building on this week's recovery from the year-to-date low, around mid-1.3700s, and gaining positive traction for the third successive day on Friday.
placeholder
EUR/USD fumbles again as trade deal hopes bolster Greenback bidsEUR/USD trimmed into the low end on Thursday, shedding a little over two-thirds of one percent from the day’s opening bids after US Dollar (USD) bids caught a broad-market boost following the tentative announcement of a pending trade deal between the United States (US) and the United Kingdom (UK).
Author  FXStreet
3 hours ago
EUR/USD trimmed into the low end on Thursday, shedding a little over two-thirds of one percent from the day’s opening bids after US Dollar (USD) bids caught a broad-market boost following the tentative announcement of a pending trade deal between the United States (US) and the United Kingdom (UK).
placeholder
AUD/USD moves below 0.6400 ahead of China’s trade balance dataThe AUD/USD pair continues its losing streak for the third consecutive session, trading near 0.6390 during Friday's Asian session. The Australian Dollar (AUD) remains under pressure due to stalled progress in US-China trade negotiations.
Author  FXStreet
3 hours ago
The AUD/USD pair continues its losing streak for the third consecutive session, trading near 0.6390 during Friday's Asian session. The Australian Dollar (AUD) remains under pressure due to stalled progress in US-China trade negotiations.
placeholder
EUR/USD faces pressure as US Dollar ticks higher, US-UK trade deal in focusEUR/USD ticks lower below 1.1300 during European trading hours on Thursday.
Author  FXStreet
19 hours ago
EUR/USD ticks lower below 1.1300 during European trading hours on Thursday.
placeholder
USD/CAD Price Forecast: Remains confined in a multi-week-old range; not out of the woods yetThe USD/CAD pair attracts buyers for the second successive day on Thursday and recovers further from the year-to-date (YTD) low, around the mid-1.3700s touched earlier this week.
Author  FXStreet
19 hours ago
The USD/CAD pair attracts buyers for the second successive day on Thursday and recovers further from the year-to-date (YTD) low, around the mid-1.3700s touched earlier this week.
Real-time Quote