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USD/CAD Price Forecast: Bulls Target 1.4450 as Momentum Builds

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  • February 27, 2025
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The USD/CAD currency pair maintains its upward momentum, moving above 1.4350 and targeting the important psychological resistance of 1.4450. Technicals such as the 14-day Relative Strength Index (RSI) remaining above 50 and the pair above the nine- and 14-day Exponential Moving Averages (EMAs) validate a building short-term trend. A decisive breach above 1.4450 would set the stage for a retest of the 1.4793 level, last touched in March 2003. On the downside, initial support is at the nine-day EMA of 1.4286, and a breach below this would set the stage for a more significant correction towards the two-month low of 1.4151. KEY LOOKOUTS • USD/CAD continues in an uptrend, staying above major EMAs and boosted by RSI above 50, indicating potential extension to 1.4450 resistance. • A strong break above the psychological level of 1.4450 has the potential to drive the pair to 1.4793, last visited in March 2003. • Near-term support is at the nine-day EMA of 1.4286, with a breakdown below potentially prompting a move towards the two-month low of 1.4151. • A failure to maintain gains above 1.4450 may erode bullish pressure, triggering a possible correction to the three-month low of 1.3927. The USD/CAD currency pair remains in firm bullish mode on the back of its standing above dominant moving averages and the 14-day RSI remaining above 50. The near-term attention is at the psychological resistance level of 1.4450, with a clean break seen taking the pair up towards the 1.4793 level last recorded in March 2003. On the downside, the nine-day EMA level of 1.4286 acts as the first point of support, followed by the 14-day EMA level of 1.4284. A decline below these levels may undermine the short-term bullish perspective and direct the pair to the two-month low of 1.4151. The traders should be careful of a possible pullback if the pair is unable to hold above 1.4450, as it can create a more serious correction towards the three-month low of 1.3927. USD/CAD continues to stay bullish, trading above important EMAs and bolstered by an RSI reading above 50. A break above 1.4450 would drive the pair towards 1.4793, and support at 1.4286 is important to avoid a further pullback. • USD/CAD continues its winning streak, trading above important EMAs and holding a strong short-term bullish bias. • The psychological level of importance at 1.4450 is the next target, with a break higher potentially paving the way to 1.4793. • The nine-day EMA at 1.4286 is the nearest support, closely followed by the 14-day EMA at 1.4284. • The 14-day Relative Strength Index (RSI) is still above 50, supporting the bullish outlook and potential for further gains. • A break above 1.4450 may cause a retest of the 1.4793 level, last seen in March 2003. • Failure of the pair to hold above 1.4450 may initiate a corrective decline to the two-month low of 1.4151. • A more pronounced fall may test the three-month low of 1.3927, which is still a major support level for the long-term trend. The USD/CAD currency pair remains to be of much interest as market forces determine its direction. Releases of economic data, interest rate measures, and international trade patterns are key to determining the performance of the currency pair. Economic stability and monetary policy decisions drive the strength of the U.S. dollar and influence its exchange rate with respect to the Canadian dollar. Further, Canada’s commodity-driven economy, relying heavily on energy exports such as oil, watches its currency waver with changes in the trend of the energy markets. This external impact affects USD/CAD’s trajectory and has USD/CAD under keen observation from traders and investors alike. USD/CAD Daily Price Chart Chart Source: TradingView Political developments and domestic economic reports in both nations contribute further to the movement of USD/CAD. Market mood, investor sentiment, and risk appetite drive changes in demand for the Canadian and U.S. currencies. The bilateral trade relations between the two countries also contribute to the dynamics, with alterations in tariffs, free trade agreements, or cross-border investments affecting exchange rates. Moreover, employment figures, inflation readings, and consumption spending patterns of the U.S. and Canada indicate economic wellness, driving market expectations. Consequently, USD/CAD is still a major pair in the foreign exchange market, showing general economic trends and world financial conditions. TECHNICAL ANALYSIS USD/CAD is still firm as the pair continues to stay above important support levels, showing continued bullish momentum. The price continues to stay above the nine- and 14-day Exponential Moving Averages (EMAs), confirming short-term strength. Also, the 14-day Relative Strength Index (RSI) staying above 50 indicates continued buying pressure. The next important level of resistance is at 1.4450, a psychological level, with a breach likely to push the pair to higher levels. On the downside, support currently lies near the nine-day EMA at 1.4286, and a breach below this may signal a change in momentum. Overall, technical indicators reflect an upward bias, but traders should watch key levels for possible trend reversals. FORECAST USD/CAD’s bearish momentum is still intact, and the pair is looking towards the crucial resistance of 1.4450. A sustained crossover above this psychological level can open the doors towards higher levels, and the next big target is 1.4793, a level witnessed as recently as March 2003. The upward trend is bolstered by technicals and solid market sentiment, and the U.S. currency has been firm amid economic stability. If the buying pressure persists, USD/CAD may continue to appreciate as investors continue to be bullish on the pair’s long-term outlook. On the bearish side, any inability to move above 1.4450 may initiate a corrective pullback, taking the pair to near-term support at 1.4286. A clear break below this level may undermine bullish momentum and take USD/CAD to the two-month low of 1.4151. Further downside pressure can develop if bearish sentiment intensifies, with the pair likely testing the three-month low of 1.3927. Market uncertainties, changing risk appetite, and external economic factors may play a role in reversing the situation, making these support levels very important

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Currencies

USD/CAD Maintains Price Above 1.4300: Market Awaits Fed Powell Testimonies Despite Escalation of Tariffs

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  • February 11, 2025
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USD/CAD is currently trading above 1.4300, consolidating as investors await Fed Jerome Powell’s testifying for future interest rate policies. The Fed kept its key rates unchanged at 4.25%-4.50%, with no cuts expected in 2025. In the meantime, the 25% tariffs of Trump on steel and aluminum create pressure on the Canadian economy, making the outlook for the CAD bearish. Market participants also keep an eye on US CPI data for further direction. Technical indicators remain sideways, while resistance is present at 1.4380 and the pair may rise as high as 1.4500. Support below 1.4270 could push prices lower. KEY LOOKOUTS • Investors await Powell’s speech to know whether the Fed is going to extend its interest rates at 4.25%-4.50% in 2025 or not. • 25% tariffs on steel and aluminum may weigh heavily on the Canadian economy, bringing a bearish trend for CAD/USD. • Tocky Wednesday, Consumer Price Index (CPI) data will be out. This will impact market sentiment and further provide cues about inflationary trends affecting Fed policy. • The upside would be further possible only if the USD/CAD breaks above 1.4380. If it drops below 1.4270, a deeper correction can be witnessed. Wednesday’s Fed testimony by Chair Jerome Powell and the subsequent silent of interest rate policy keep the USD/CAD under the spotlight, with investors watching carefully for further clues. Since the Fed has held rates at 4.25%-4.50%, it is of immense interest to see if cuts are delayed until the end of 2025. Meanwhile, tariffs imposed by Trump on steel and aluminum at 25% are going to devastate Canada and will continue to reinforce a bearish view of the CAD. The US CPI data is going to be an important driver for expectations around inflation and monetary policy. Tactically, key resistance is seen at 1.4380. A clear break above here should send prices higher, while any move below 1.4270 should put support at risk and ideally could see a stronger fall. The USD/CAD pair still trades above the 1.4300 line as investors keep an eye out for Fed Chair Powell’s testimonial for key interest rate policies. The announcement of 25% tariffs imposed by Trump on steel and aluminum is weighing against the Canadian Dollar, while positive US CPI later in the session will have enough influence on sentiment. Key level to watch up: 1.4380. Key level to watch downside: 1.4270 • The pair remains steady pending key economic events. • Traders look for signals on how long the Fed will keep rates at 4.25%-4.50%. • The Canadian economy faces pressure as the U.S. imposes tariffs on steel and aluminum. • The inflation report on Wednesday could influence future Fed policy decisions. • Investors remain uncertain, leading to a tight trading range of 1.4270-1.4380. • A breakout above this level could push USD/CAD toward 1.4500. • A break below might push the price lower to 1.4195 and then to 1.4120. The USD/CAD is still trading flat above 1.4300, as traders are waiting for Fed Chair Jerome Powell to testify before Congress. Market participants are looking for clues on how long the Federal Reserve will keep interest rates at 4.25%-4.50%, with many analysts expecting no rate cuts in 2025. Concerns over Trump’s 25% tariffs on steel and aluminum continue to weigh on the Canadian economy, as Canada is the largest exporter of aluminum to the United States. Such levies may mean higher inflation rates in the US, and by extension, that the Fed must continue its existing monetary policy much longer. USD/CAD Daily Price Chart TradingView Prepared by ELLYANA USD/CAD is trading between 1.4270 and 1.4380; 1.4380 serves as a pivotal resistance point for the pair. A breakout above this could take the pair towards 1.4500, whereas a push below 1.4270 could lead to more losses toward 1.4195 and 1.4120. Another event that markets are eagerly awaiting is the U.S. Consumer Price Index (CPI) data scheduled on Wednesday; this will have considerable ramifications in shifting market sentiment and increasing demand for USD. With various economic and political factors present, the outcome of the USD/CAD seems uncertain, but Powell’s testimonial and then the CPI to be released shall be the primary drivers for a future price shift. TECHNICAL ANALYSIS In the USD/CAD, consolidation is seen over a tight band of 1.4270-1.4380 due to the scheduled economic events; the 50-period Exponential Moving Average has been seen resisting the upside trend at around 1.4365. Meanwhile, the 14-period Relative Strength Index (RSI) is in the 40.00-60.00 area, showing a neutral to sideways trend. A break above 1.4380 would be likely to push the pair to the round-level resistance of 1.4500, and then to the January 30 high of 1.4600. A break below 1.4270 could be seen as a trigger for further losses down to the December 10 high of 1.4195 and then to the December 11 low of 1.4120. Traders will watch for the volumes to build and confirmation signs before making a directional bet. FORECAST Should USD/CAD break out of the resistance line at 1.4380, further gains could occur for the currency, and that’s towards round number resistance 1.4500. An increased breakout through the latter would lead the currency pair to move further to January 30 highs at 1.4600 with the boost in positive economic numbers from the US or more hawkish speeches by Fed Chairman Powell. Additionally, sustained inflationary concerns in the U.S., potentially fueled by Trump’s 25% tariffs, could lead to higher USD demand, reinforcing the pair’s upward trajectory. If the Fed delays rate cuts throughout 2025, the U.S. dollar may strengthen further, keeping USD/CAD in an uptrend. On the downside, if USD/CAD goes below the February 5 low of 1.4270, it might reflect increased bearish pressure that could drag the pair toward the December 10 high of 1.4195. Further below this level, it would open the door for a possible dip toward the December 11 low of 1.4120. Any signs of a softer U.S. Release of CPI data or dovish comment from Powell will weaken USD; hence the

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