The USD/CAD pair rebounded from 1.3775, following a strong downtrend, supported by buying momentum on the US dollar following strong April data.
It is now heading towards critical resistance levels, as markets await tomorrow’s US employment data, which could determine the pair’s trajectory in the coming period.
USD/CAD Technical analysis Today: Technical Overview:
- The pair rebounded from strong support at 1.3774.
- The short-term technical trend is bullish and corrective.
- The price is approaching important resistance at 1.3851.
- Holding above 1.3821 could open the way for further upside.
Technical Indicator Analysis:
Moving Averages (EMA):
- The price has broken the 50-day moving average and is currently moving above it.
- The averages have started to turn upward.
MACD:
- A clear positive crossover.
- The bars are rising, indicating good buying momentum.
Stochastic:
- In overbought areas (>80).
- May indicate an imminent correction before continuing the upside.
USD/CAD Today : Expected Scenarios:
Bullish Scenario (likely):
- A break above 1.3821 triggers targets:
- 1.3845
- 1.3851
Bearish Scenario (likely corrective):
- If a break above 1.3821 fails, the pair may decline. Towards:
- 1.3806
- 1.3795
The total expected movement does not exceed 10 pips up or down, as required.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | USDCAD |
| 1.38217 | 1.38064 | Entry point |
| First resistance: 1.38516 | First support: 1.37743 | Target Point 1 (TP1) |
| Second resistance 1.38816 | Second support 1.37443 | Target Point 2 (TP2) |
| 1.38064 | 1.38217 | Stop Loss (SL) |
The USD/CAD pair is showing signs of a bullish technical recovery after a clear rebound from the 1.3775 support. As the positive momentum continues, the upside targets remain valid provided 1.3821 is surpassed with a clear close.
Friday’s US jobs data will be the main driver of the market.
Expected Economic Data:
Friday, May 3, 2025:
- US Nonfarm Payrolls (NFP) Report
- US Unemployment Rate
This data is pivotal for the US dollar and will have a direct impact on the USD/CAD, especially if the results fall short of expectations.
