The Canadian dollar is trading at its highest level this week against the US dollar, supported by rising oil prices and strong Canadian economic data.
Conversely, the US dollar continues to decline as markets await the Federal Reserve meetings and the absence of surprises in economic data
Technical Indicator Analysis
Moving Averages
The price is below the three moving averages (50, 100, and 200).
The downward slope of the moving averages supports the continuation of the downtrend.
MACD
Still in the negative zone. Weak bars but no real reversal signals
Stochastic
Mild bounce from the oversold zone.
Momentum remains limited and may only reflect a corrective bounce
Possible Scenarios
Bearish Scenario
A break of 1.3796 will lead to a target of 1.3771.
A break of 1.3771 may accelerate the decline towards 1.3740
Bullish Scenario
A rise above 1.3833 may retest 1.3850.
A positive turnaround requires a daily close above 1.3850.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | USDCAD |
| 1.38333 | 1.37966 | Entry point |
| First resistance: 1.38502 | First support: 1.37812 | Target Point 1 (TP1) |
| Second resistance 1.38701 | Second support 1.37581 | Target Point 2 (TP2) |
| 1.37966 | 1.38333 | Stop Loss (SL) |
The USD/CAD pair continues to move within a regular downward trajectory with sharp resistance at 1.3833.
As long as this level remains unbroken, the downside potential remains strong.
It is recommended to follow through with a break of 1.3796 to enter a sell trade, targeting 1.3771 and 1.3740, with a stop loss above 1.3850.
