empty
17.03.2025 12:05 PM
USD/CAD: The Pair Starts the New Week with Caution

This image is no longer relevant

The USD/CAD pair begins the new week with caution, fluctuating within a narrow range above 1.4350 and remaining above the 50-day SMA. However, fundamental factors suggest potential downside risks.

This image is no longer relevant

Positive developments in U.S.-Canada trade negotiations, along with the recent rise in crude oil prices, support the commodity-dependent Canadian dollar, exerting downward pressure on the pair. Oil prices have reached a two-week high amid escalating tensions in the Red Sea, as the U.S. vowed to continue strikes against Yemen's Houthis until their attacks cease. This situation also impacts the market. Additionally, bearish sentiment surrounding the U.S. dollar creates negative prospects for USD/CAD.

This image is no longer relevant

The U.S. Dollar Index remains near multi-month lows due to concerns about the potential negative impact of Trump's tariffs on the economy. Weaker inflation data and signs of labor market cooling may lead to interest rate cuts by the Federal Reserve this year, further restraining dollar bulls.

This image is no longer relevant

Traders should closely monitor the release of U.S. economic data, including retail sales figures and the Empire State Manufacturing Index, which could provide some short-term momentum to the pair during the North American session. However, the key event of the week remains the FOMC monetary policy meeting on Wednesday, which will have a significant impact on the U.S. dollar and set the direction for USD/CAD.

Technical Outlook:

From a technical perspective, bears should wait for confirmation of weakness below the 1.4350 support level, where the 50-day SMA is positioned, before initiating new sell positions. Furthermore, daily chart oscillators have yet to shift into negative territory, indicating that further confirmation is required for a clear bearish signal.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Overview – June 23: Geopolitics vs. Economy

The GBP/USD currency pair traded sluggishly throughout Friday, but one technical factor is worth noting: the price failed to consolidate above the moving average. Thus, technical analysis currently suggests

Paolo Greco 03:50 2025-06-23 UTC+2

EUR/USD Overview – June 23: The U.S. Has Officially Entered the War Against Iran

The EUR/USD currency pair traded with minimal volatility and no clear direction throughout Friday. The upward trend remains intact without any doubt. However, a significant strengthening of the U.S. dollar

Paolo Greco 03:50 2025-06-23 UTC+2

US-EU Negotiations on the Verge of Collapse

As anticipated, this phrase can describe nearly every action taken by Donald Trump. I have consistently argued that the core of any negotiations involving Trump comes down to this

Chin Zhao 00:13 2025-06-23 UTC+2

Iran Preparing a "Long-Term Response" to the US

Only a few hours have passed since the overnight airstrike by American bombers on Iranian nuclear facilities—and already, missiles are flying in the opposite direction. However, they are not targeting

Chin Zhao 00:13 2025-06-23 UTC+2

EUR/USD: Prepare for Price Turbulence

The economic calendar for the upcoming week is packed with important releases and events. However, all of them will be overshadowed by geopolitical developments—or rather, one specific event that took

Irina Manzenko 00:13 2025-06-23 UTC+2

U.S. Dollar: Weekly Preview

The United States brings many important economic events. Additionally, as I have mentioned several times, the ongoing war in the Middle East could greatly influence market sentiment. As a result

Chin Zhao 00:12 2025-06-23 UTC+2

British Pound: Weekly Preview

The dynamics of the British pound will also not be driven by the pound itself or domestic UK news. The reasons are the same: the U.S. involvement in the Middle

Chin Zhao 00:12 2025-06-23 UTC+2

Euro: Preview of the Week

Few genuinely believe that economic news will overshadow other developments in the coming week. These "other developments" are of global significance. Over the weekend, the United States launched a strike

Chin Zhao 00:12 2025-06-23 UTC+2

AUD/JPY. Analysis and Forecast

The AUD/JPY pair is regaining positive momentum after a modest pullback the previous day. However, spot prices remain confined within a multi-day range due to mixed fundamental signals, trading near

Irina Yanina 14:39 2025-06-20 UTC+2

USD/CHF: The Pair Struggles to Gain Momentum Amid Conflicting Forces

At present, USD/CHF shows no clear intraday direction and fluctuates within a narrow range just above the 0.8155 level, reflecting market uncertainty during the European session. The Swiss franc

Irina Yanina 14:36 2025-06-20 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.