USD/CAD Price at $1.3638 Amid Canadian CPI Data Release

The USD/CAD pair is currently trading at $1.36380, marking a 0.09% increase in the 4-hour timeframe. The pivot point is set at $1.3644, serving as a critical reference for traders.

USD/CAD Price Chart - Source: Tradingview

Immediate resistance levels are at $1.3687, $1.3726, and $1.3768, indicating potential barriers for further upward movement and areas where selling pressure may intensify.

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Impact of CPI Data on USD/CAD

On the downside, immediate support is at $1.3589, with additional support levels at $1.3552 and $1.3520. These levels are crucial for maintaining the current price structure, acting as potential rebound points if the market faces downward pressure.

The Relative Strength Index (RSI) stands at 58, suggesting a moderately bullish sentiment. This indicates a leaning towards buying, yet it is not overbought, leaving room for potential upward movement.

USD/CAD Price Chart - Source: Tradingview

The 50-day Exponential Moving Average (EMA) is positioned at $1.3619, just below the current price. Trading above this EMA typically signals a bullish trend. With the current price above this level, it reinforces a positive outlook for the USD/CAD pair in the near term.

Economic Events AheadUpcoming economic data releases include the Canadian CPI figures, which are expected to influence the USD/CAD price.

Key data points to watch are the monthly CPI at 0.5%, median CPI year-over-year at 2.7%, trimmed CPI year-over-year at 2.9%, common CPI year-over-year at 2.8%, and core CPI month-over-month at 0.5%.

USD/CAD Price Forecast

Given the current market conditions and technical indicators, the recommended trading strategy is to set a buy stop at $1.36519, with a take profit target at $1.36881 and a stop loss at $1.36189. This approach aligns with observing critical technical levels and responding to shifts in economic data and central bank policies.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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