Over the past 48 hours, the USD/CAD currency pair has exhibited mild fluctuations, hovering around yesterday’s closing price of 1.36374 within a range of 1.35 to 1.37. Despite rising oil prices providing some support to the Canadian dollar, cooler-than-expected U.S. inflation data maintained underlying strength for the U.S. dollar across forex markets. Overall, bullish sentiment for the USD remains intact, keeping USD/CAD on a positive trajectory.

Recent market news highlights a strong support level at 1.3500 for USD/CAD, and combined with broad USD strength observed in forex trading, a move towards the next resistance level of 1.3700 appears likely. This reflects investor confidence in the U.S. economic outlook relative to Canada’s oil-sensitive economy.

For the average investor, this means that holding USD assets may offer better value preservation during periods of dollar strength, though attention should be paid to oil price swings and inflation data that can influence CAD valuation. In summary, over the next day or two, the USD/CAD pair is expected to continue trending modestly upward, with key market drivers including U.S. labor data and crude oil price developments.

Daily Chart

The USDCAD daily chart reveals a gradual uptrend starting from the support near 1.3500. The 200-day and 50-day moving averages are positioned around 1.38 and 1.37 respectively, indicating longer-term resistance zones. Bollinger Bands have expanded recently, signaling increased volatility. The MACD remains above the zero line, confirming short-term bullish momentum with signs of ongoing recovery.

1H Chart

In the last 3-5 days on the hourly chart, USDCAD has been oscillating between 1.3550 and 1.3670, finding support near the 9-day EMA. A short-term moving average golden cross has emerged, signaling upward momentum. MACD histogram is expanding positively, supporting the strengthening buying pressure. Overall, the technical picture suggests a cautiously bullish sentiment in the short term.

Technical Trend:  Cautiously bullish upward trend

Technically, USDCAD has established a clear support zone around 1.3500, with multiple successful tests forming a strong floor. Daily MACD momentum is pointing upward, complemented by an hourly EMA golden cross and expanding MACD histogram, suggesting emerging upside momentum. No major reversal signals have appeared recently. Watch for a decisive break above the 1.3700 resistance level with accompanying volume to trigger the next leg higher.

There are limited significant direct economic events impacting USDCAD today in GMT+1 time zone. Key Canadian data releases at 14:30 include the Consumer Price Index (CPI) and Core CPI, which hold the most relevance to USDCAD price action. Should inflation figures surpass forecasts, the Canadian dollar may strengthen, placing downside pressure on USDCAD. Other US and European economic indicators released today bear less immediate impact on this currency pair. Traders should pay close attention to Canadian CPI results and the ensuing market reaction.

Resistance & Support

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