Created
: 2025.01.16
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/CAD Price Forecast: The first upside barrier emerges above 1.4400
World FX news
Breaking news
USD/CAD Price Forecast: The first upside barrier emerges above 1.4400
New
2025.01.16 14:28
2025.01.16 14:28
2025.01.16 14:28
- USD/CAD rebounds to around 1.4355 in Thursday's early European session.
- The negative outlook prevails below the 100-period EMA with the bearish RSI indicator.
- The initial support level is located at 1.4322; the first upside barrier emerges at the 1.4400-1.4410 region.
The USD/CAD pair recovers to 1.4355, snapping the three-day losing streak during the early European session on Thursday. The renewed US Dollar (USD) demand provides some support to the pair. However, a rise in crude oil prices might boost the commodity-linked Loonie and cap the upside for the pair.
According to the 4-hour chart, the bearish outlook of USD/CAD remains intact as the pair is below the key 100-period Exponential Moving Average (EMA). If the pair decisively crosses above this level, it could resume its upside. However, the Relative Strength Index (RSI) stands below the midline near 45.80, suggesting that further downside cannot be ruled out in the near term.
The initial support level for USD/CAD is located at 1.4322, the low of January 16. Extended losses could expose 1.4300, representing the lower limit of the Bollinger Band and psychological level. The additional downside filter to watch is 1.4279, the low of January 6.
On the other hand, sustained trading above the key 100-period EMA could see a rally to the 1.4400-1.4410 zone, the round mark and the high of January 14. Further north, the next hurdle to watch is 1.4442, the upper boundary of the Bollinger Band.
USD/CAD 4-hour chart
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada's largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada's exports versus its imports. Other factors include market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada's biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada's case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
Last updated
: 2025.01.16
Related articles
GBP/JPY remains tepid near 190.50 following key economic figures from United Kingdom
19 minutes agoEUR/GBP sticks to gains around 0.8635-0.8640 area after UK data/German CPI
34 minutes agoUK GDP rebounds 0.1% MoM in November vs. 0.2% expected
50 minutes agoUSD/CHF holds steady above 0.9100 as cooling US inflation keeps Fed on track for rate cuts
59 minutes agoFX option expiries for Jan 16 NY cut
2025.01.16 15:19EUR/USD moves below 1.0300 due to dovish sentiment surrounding ECB, US Retail Sales eyed
2025.01.16 14:31
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
GBP/JPY remains tepid near 190.50 following key economic figures from United Kingdom
GBP/JPY continues to lose ground for the second successive day, trading around 190.60 during the early European hours.
New
2025.01.16 16:32EUR/GBP sticks to gains around 0.8635-0.8640 area after UK data/German CPI
The EUR/GBP cross attracts fresh buyers near the 0.8400 mark and stalls the previous day's sharp retracement slide from its highest level since August 23.
New
2025.01.16 16:17UK GDP rebounds 0.1% MoM in November vs. 0.2% expected
The UK economy returned to expansion, with the Gross Domestic Product (GDP) arriving at 0.1% in November after declining 0.1% in October, according to the latest data published by the Office for National Statistics (ONS) on Thursday.
New
2025.01.16 16:01USD/CHF holds steady above 0.9100 as cooling US inflation keeps Fed on track for rate cuts
The USD/CHF pair trades on a flat note around 0.9125 during the early European trading hours on Thursday.
New
2025.01.16 15:51FX option expiries for Jan 16 NY cut
FX option expiries for Jan 16 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
2025.01.16 15:19EUR/USD moves below 1.0300 due to dovish sentiment surrounding ECB, US Retail Sales eyed
EUR/USD extends losses for the second successive session, trading around 1.0280 during the Asian hours on Thursday.
New
2025.01.16 14:31USD/CAD Price Forecast: The first upside barrier emerges above 1.4400
The USD/CAD pair recovers to 1.4355, snapping the three-day losing streak during the early European session on Thursday.
New
2025.01.16 14:27EUR/JPY Price Forecast: Bounces off one-month low, still deep in the red below mid-160.00s
The EUR/JPY cross drifts lower for the second successive day on Thursday and drops to over a one-month trough, around the 159.75 region during the Asian session.
New
2025.01.16 13:59Silver Price Forecast: XAG/USD remains above $30.50 due to reinforced Fed's dovish stance
Silver price (XAG/USD) remains stable at around $30.70 per troy ounce during the Asian session on Thursday.
New
2025.01.16 13:58India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Thursday, according to data compiled by FXStreet.
New
2025.01.16 13:35Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
