Created
: 2025.06.20
- 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: Remains capped below 100-day EMA, bearish bias prevails near 1.3700
World FX news
Breaking news
USD/CAD Price Forecast: Remains capped below 100-day EMA, bearish bias prevails near 1.3700
New
2025.06.20 15:55
2025.06.20 15:55
2025.06.20 15:55
- USD/CAD steadies around 1.3700 in Friday's early European session.
- The negative view of the pair prevails below the 100-day EMA with the bearish RSI indicator.
- The initial support level is seen at 1.3660; the immediate resistance level to watch is 1.3746.
The USD/CAD pair holds steady near 1.3700 during the early European trading hours on Friday. However, fears of US involvement in Middle East conflict could spark demand for the US Dollar (USD), a safe-haven currency. The White House said US President Donald Trump will make a decision within the next two weeks about whether to join Israel in the war.
Technically, the bearish outlook of USD/CAD remains in play as the pair remains capped below the key 100-day Exponential Moving Average (EMA) on the daily chart. Furthermore, the downward momentum is supported by the 14-day Relative Strength Index (RSI), which is located below the midline around 45.0, suggesting that the path of least resistance is to the downside.
The initial support level for the pair is seen at 1.3660, the low of June 6. Any follow-through selling below this level could see a drop to 1.3568, the lower limit of the Bollinger Band. A decisive break below the mentioned level could expose 1.3430, the low of September 24, 2024.
On the bright side, the first upside barrier for USD/CAD emerges at 1.3746, the high of June 19. Sustained trading above this level could pave the way to 1.3830, the upper boundary of the Bollinger Band. Extended gains could see the next hurdle at 1.3945, the 100-day EMA.
USD/CAD daily 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
: 2025.06.20
Related articles
JPY: Food prices continue to drive inflation - Commerzbank
10 minutes agoGBP: Vote split endorses August BoE cut - ING
17 minutes agoChina SMEI: Demand weakened in June - Standard Chartered
21 minutes agoUSD: Support from geopolitical risk faltering - ING
23 minutes agoNZD/USD: Scope to test 0.6025 - UOB Group
58 minutes agoUSD/CAD remains capped below 1.3700 with the loonie favoured by a brighter market mood
2025.06.20 19:20
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
JPY: Food prices continue to drive inflation - Commerzbank
Rice accounts for just 0.62% of the Japanese consumer price index, Commerzbank's FX analyst Volkmar Baur notes.
New
2025.06.20 20:11GBP: Vote split endorses August BoE cut - ING
The Pound Sterling (GBP) was only lightly touched by a consensus Bank of England hold on Thursday, ING's FX analyst Francesco Pesole notes
New
2025.06.20 20:04Gold Price Forecast: XAU/USD is testing $3,340 support under growing bearish pressure
Gold (XAU/USD) is trading lower on Friday as easing concerns of a regional war in the Middle East have undermined demand for safe havens.
New
2025.06.20 20:03China SMEI: Demand weakened in June - Standard Chartered
Headline SMEI eased further to a nine-month low of 50.1 in June as new orders shrank. Export-oriented SMEs' performance sub-index fell below the 50 level, reflecting the tariff chill. Non-manufacturing SMEs' performance stayed in contractionary territory for a third straight month.
New
2025.06.20 20:01USD: Support from geopolitical risk faltering - ING
The White House said yesterday it will decide whether to order direct strikes on Iran within two weeks, ING's FX analyst Francesco Pesole notes.
New
2025.06.20 19:58NZD/USD: Scope to test 0.6025 - UOB Group
Rebound in New Zealand Dollar (NZD) has scope to test 0.6025 against US Dollar (USD), but a sustained break above this level is unlikely. In the longer run, NZD must break and hold below 0.5940 before further declines are likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.06.20 19:23USD/CAD remains capped below 1.3700 with the loonie favoured by a brighter market mood
The Canadian Dollar is trading higher against a weaker USD on Monday, trimming losses following a three-day sell-off, as a brighter market mood, coupled with high Oil prices, presents a more favourable backdrop for the CAD.US President Donald Trump eased investors' fears earlier today, affirming tha
New
2025.06.20 19:20Silver Price Forecast: XAG/USD bounces back to near $36 as Middle East conflict lingers
Silver price (XAG/USD) claws back half of its early losses and rebounds to near $36.10 during the European trading session on Friday.
New
2025.06.20 19:15USD/CHF: SNB may not be done cutting rates - OCBC
The Swiss National Bank (SNB) cut rate 25bp to bring policy rate down to 0%, as widely anticipated. USD/CHF was last at 0.8165 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
2025.06.20 19:15US: Not quite 250 basis points - Commerzbank
Despite the wishes of a certain White House resident, the US Federal Reserve left its key interest rate unchanged at 4.25-4.5% on Wednesday. However, it adjusted its economic projections quite significantly. These indicate expectations of a somewhat stagflationary environment.
New
2025.06.20 19:09Disclaimer:
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
