Fundamental Analysis
The USD/CAD pair has experienced a sharp decline during this week’s sessions, influenced by the weakening of the US dollar against multiple currencies. Important upcoming economic news related to both currencies is expected to impact the pair’s performance, as indicated in the economic calendar.
Technical Analysis
The pair was trading in a short-term uptrend but recently reached the key resistance level at 1.4800, where the upward momentum paused. The pair then corrected downward, breaking the horizontal support at 1.4160, and declined further to the next support level at 1.3470. The 1.3470 level acts as a strong support, recommended as a stop-loss point.
Expected Movement
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Bullish Scenario: If the pair breaks above the resistance at 1.3750, it is expected to target the next resistance level at 1.3970 at least.
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Bearish Scenario: If the pair breaks below the support at 1.3600, further decline towards the support at 1.3470 or lower is anticipated.
