empty
19.03.2025 11:16 AM
USD/CAD. Analysis and Forecast

This image is no longer relevant

The USD/CAD pair is showing signs of recovery for the second consecutive day after a recent decline, rebounding from a two-week low around 1.4260. Spot prices have climbed above the 1.4300 round level, but further upside remains limited as traders await the FOMC meeting.

Market expectations suggest that the Federal Reserve is likely to keep interest rates unchanged within the 4.25% - 4.50% range. Thus, investors will focus on the updated economic forecasts and comments from Fed Chair Jerome Powell, which could provide clues regarding the future trajectory of monetary policy. This, in turn, will have a significant impact on the U.S. dollar's movement and, consequently, on USD/CAD.

The Canadian dollar's position is also noteworthy. The recent pullback in oil prices exerts some pressure on the loonie, which remains closely tied to commodity markets. However, the risk of further geopolitical escalations in the Middle East may limit the decline in oil prices, providing some support for the Canadian currency.

This image is no longer relevant

Additionally, an unexpected increase in Canada's annual inflation rate to 2.6% in February may deter traders from taking aggressive bearish positions against the Canadian dollar, which further limits USD/CAD's upside potential.

From a technical perspective, spot prices remain above the 100-day Simple Moving Average (SMA), suggesting caution before assuming the continuation of last week's decline. Moreover, mixed oscillators on the daily chart fail to fully confirm a bearish outlook, as they are gradually attempting to shift into positive territory.

The nearest resistance for USD/CAD is located at the 50-day SMA near 1.4350. If the pair successfully breaks above this level, it could potentially reach the 1.4400 round level.

On the other hand, support is found below the 1.4300 round level, near yesterday's low at 1.4260. Beyond that, the next key supports lie at the 100-day SMA and the 1.4200 psychological level.

Overall, the current market situation demands close monitoring of economic data and political developments.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Markets Won't Rush Headfirst into the Fire

Donald Trump has dealt such a heavy blow to globalization that conditions and outlooks for the future have changed—now divided along territorial lines. While European banks believe the S&P 500's

Marek Petkovich 07:00 2025-03-26 UTC+2

What to Pay Attention to on March 26? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Wednesday, and only one important report is expected. The UK will release what may seem like a significant inflation report. Inflation remains

Paolo Greco 06:03 2025-03-26 UTC+2

GBP/USD Pair Overview – March 26: The Pound Isn't Even Trying. Inertial Growth Continues

The GBP/USD currency pair resumed its upward movement on Tuesday. It did so on a day when there were no significant events in the UK, and the only noteworthy report

Paolo Greco 02:40 2025-03-26 UTC+2

EUR/USD Pair Overview – March 26: No News, No Movement

The EUR/USD currency pair traded with low volatility on Tuesday. There have been times when the euro would crawl just 40 pips a day, and while current volatility isn't extremely

Paolo Greco 02:40 2025-03-26 UTC+2

EUR/USD: The Southward Trend Stalls, but Long Positions Remain Risky

A mixed situation has developed around the EUR/USD pair. On the one hand, the bearish sentiment prevails: last week, the price reached a 5-month high at 1.0955, while on Tuesday

Irina Manzenko 23:59 2025-03-25 UTC+2

USD/JPY. Analysis and Forecast

The USD/JPY pair is retreating from the psychological level of 151.00, reached earlier on Tuesday, though this pullback is not accompanied by significant selling pressure. The Japanese yen is attracting

Irina Yanina 18:09 2025-03-25 UTC+2

The Market Has Turned Everything Upside Down

Is the worst behind us? As the S&P 500 surged to a three-week high amid easing tariff threats from Donald Trump, banks and investment firms rushed to the bulls' side

Marek Petkovich 08:18 2025-03-25 UTC+2

What to Pay Attention to on March 25? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic events are scheduled for Tuesday, and none are of significant importance. At best, the German business climate report and U.S. new home sales data can be mentioned

Paolo Greco 06:30 2025-03-25 UTC+2

GBP/USD Pair Overview – March 25: The Pound Rises Before It Even Wakes Up

On Monday, the GBP/USD currency pair again showed upward movement. The pound sterling began rising overnight despite no clear reasons or fundamental drivers. Yet the market on Monday clearly demonstrated

Paolo Greco 04:02 2025-03-25 UTC+2

EUR/USD Pair Overview – March 25: The Euro Continues to Creep Downward in a Correction

The EUR/USD currency pair showed relatively low volatility on Monday. However, looking at the chart below, it becomes clear that volatility hasn't been high recently—aside from a few days several

Paolo Greco 04:02 2025-03-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.