Technical Analysis: USDCAD

USDCAD hit an eight-month low

On Wednesday, USDCAD continued falling. It reached the minimum of 1.3652 at one point, which marked the lowest level since 9^th October 2024.

The BOC kept the benchmark interest rate unchanged

On Wednesday, the BOC (Bank of Canada) kept the interest rate unchanged for the second straight time at 2.75%. If US tariff policies drag down economic growth, and the inflation is mild, it is likely to cut the interest rate, officials at the BOC said.

The USDX broke below the 99 mark

On Wednesday, as US economic data was weak, the expectation that the Fed will cut the interest rate climbed, making the USDX broke below the 99 mark to a 6-week low. The USDX ended down 0.42% at 98.81.

The bearish market trend prevailed

the Chart of the Day

On the chart of the day, USDCAD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that USDCAD will fall further. Investors should focus on whether USDCAD will break through the support at 1.359. It will decline further with potential support at 1.347 if it breaks below 1.359.

4-hour chart

On the 4-hour chart, USDCAD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether USDCAD will break through the resistance at 1.370. It will fall further if it rebounds but is capped at 1.370.

Key resistance: 1.370,1.374

Key support: 1.359,1.347

Generally speaking, USDCAD is likely to fall in the short term. Investors should sell as it rebounds during the day.