- The CAD trading near the 1.4,000 region after a bounce from the mid -1.38s earlier this week.
- The most enlarged Canadian inflation and the Powell’s tariff warnings in the Canadian dollar expectations.
- The main resistance stands at 1.4060; The technical background gives the landing despite the recent recovery.
The USD/CAD is coming near the 1.4000 region on Tuesday, and uniforms after recovering from its lowest levels around the 1.3850 region. The Canadian dollar failed to obtain strength despite the cooler inflation report expected for the month of March, while traders are preparing for the Canada Bank’s policy decision. Meanwhile, the US dollar tried a moderate recovery after days of losses related to continuous trade tensions with China.
The inflation rate in Canada slowed to 2.3 % annually in March, less than expectations and a decrease than 2.6 % previously. Monthly, the consumer price index increased by only 0.3 %, and the loss of expectations by 0.7 %. The data has slightly eased the market expectations that BOC will keep steady rates of 2.75 % at the first policy meeting since June. The markets will closely see the tone of the governor, especially since uncertainty rises around how Trump’s aggressive tariff policy in Canada can destroy Canada.
On the American side, Greenback faces constant pressure from global investors as Trump’s tariff continues to undermine confidence. According to the commerzbank analysts, the complexity and the inability to predict the current American trade policy raises the risk of inflation while destroying confidence between global trading partners. The President of the Federal Reserve Powell chanted these concerns, warning that the inflationary effects of definitions could be stronger and longer than expected at first. He added that it is too early to determine the correct path of interest rates and that the federal reserve is not in a hurry to act.
Technically, the US dollar/CAD shows Haboodi signals in general, even with a modest gain per day. The pair is trading near the upper part of his daily group between 1.3850 and 1.3980. The relative power index is located near 37 in a neutral area, while MACD prints a sale signal. Despite some mixed signals of momentum indicators, moving averages enhance negative expectations: Smas 20, 100 and 200 days, along with EMA for 10 days, all indicate more weakness. Support depends at 1.3827, while resistance levels are located at 1.4002, 1.4060 and 1.4063.
USD/CAD Technical Analysis
