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.

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.

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.

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.