The USDCAD pair is currently at a crucial level. On October 21, it touched a high of 1.3840. Analyzing the weekly price chart, this level (1.3840-1.3890) has historically been a resistance zone where prices have frequently declined. However, the recent uptrend from the 1.3400 level appears strong.
At present, the price is holding above the important level of 1.3800, which is positive for bullish sentiment. This level is vital for traders monitoring price movements. Additionally, significant economic news is set to be released from Canada tomorrow, including the Bank of Canada’s interest rate decision, which is expected to shift from 4.25% to 3.75%. The final decision will be announced on October 22, along with the BOC monetary policy report and press conference, indicating potential volatility across all CAD pairs.
In the four-hour timeframe for USDCAD, both the 50 and 200 EMA moving averages are showing a continuation of the uptrend. Currently, there are no signs of a trend reversal. The immediate support level is 1.3700, while the critical resistance is 1.3920.
USD vs CAD forecast: Our outlook suggests that the pair could maintain its upward momentum in the upcoming sessions as long as the 1.3700 support level remains intact. The price could rise to 1.3920; if it establishes stability there, the next target could be 1.4070. However, achieving these targets may not be straightforward for bulls.
Overall, the 1.3920 level is one to watch closely. It’s important to note that the price may retrace to around 1.3760 before making a strong upward move. We remain optimistic about a bullish short-term outlook.
