untitled design

USD/CAD falls on the strength of the dollar, amid the fall in oil prices

  • USD/CAD fell on market sentiment and high oil prices.
  • A US dollar bid would keep USD/CAD under heavy pressure as USD/CAD targets 1.3500.
  • USD/CAD Price Analysis: Would continue to head lower unless buyers conquer 1.3600.

He CAD spread its gains against USD for three straight days, buoyed by a boost in risk appetite and general US dollar weakness. The dollar is pressured by expectations of a less aggressive US Federal Reserve (Fed). The pair USD/CAD trades at 1.3569 after hitting a high of 1.3616.

CAD driven by high oil prices, risk appetite and USD weakness

USD/CAD continued its slide on rising oil prices as the Western Texas Intermediate (WTI) rose more than 6% on a weekly basis. Canada is one of the world’s leading exporters of crude oil and natural gas. As a result, higher energy prices tend to support the loonie.

On the other hand, the weakening of the US dollar caused a further decline in the USD/CAD pair, which fell to a three-week low. However, the Dollar Index (DXY), a barometer of the value of the greenback against a basket of six currencies, has pared some of its losses, gaining 0.23% to 102,665.

Traders should keep in mind that the Canadian dollar, as a risk currency, would be subject to weakening if geopolitical tensions increase or sentiment changes. As long as investor sentiment remains upbeat, USD/CAD has room for another leg lower, and could test the 100 day EMA at 1.3520.

In terms of economic data, highlighted on the US agenda were February pending home sales, which rose 0.8% m/m, above estimates for a 0.3% drop. In annual terms, they decreased by 21.1%, below the 29.4% plunge expected.

On the Canadian front, the agenda was attended by the Deputy Governor of the Bank of Canada (BoC), Toni Gravelle. Gravelle did not talk about monetary policy, but said the BoC is prepared to intervene if the banking system comes under pressure. He added that the BOC’s quantitative tightening (QT) program would run its course in the first half of 2025.

USD/CAD Technical Analysis

USD/CAD Daily chart

USD/CAD remains biased to the downside after dipping below the 50-day EMA at 1.3594. A drop below 1.3550 will expose the 100 day EMA at 1.3520, before testing 1.3500. Once broken, a supportive trend line could be tested around 1.3420/30 before pulling back to 1.3400.

On the other hand, if buyers of the USD/CAD recapture the 50 day EMA at 1.3594, it could pave the way to test 1.3600, followed by the 20 day EMA.


Last price today 1.3567
Today Change Daily -0.0034
today’s daily variation -0.25
today’s daily opening 1.3601
daily SMA20 1.3704
daily SMA50 1.3538
daily SMA100 1.3517
daily SMA200 1.3366
previous daily high 1.3695
previous daily low 1.3592
Previous Weekly High 1.3804
previous weekly low 1.3631
Previous Monthly High 1.3666
Previous monthly minimum 1.3262
Fibonacci daily 38.2 1.3631
Fibonacci 61.8% daily 1.3656
Daily Pivot Point S1 1.3564
Daily Pivot Point S2 1.3526
Daily Pivot Point S3 1,346
Daily Pivot Point R1 1.3667
Daily Pivot Point R2 1.3733
Daily Pivot Point R3 1,377

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights


Most popular