empty
19.03.2025 11:16 AM
USD/CAD. Analysis and Forecast

This image is no longer relevant

The USD/CAD pair is showing signs of recovery for the second consecutive day after a recent decline, rebounding from a two-week low around 1.4260. Spot prices have climbed above the 1.4300 round level, but further upside remains limited as traders await the FOMC meeting.

Market expectations suggest that the Federal Reserve is likely to keep interest rates unchanged within the 4.25% - 4.50% range. Thus, investors will focus on the updated economic forecasts and comments from Fed Chair Jerome Powell, which could provide clues regarding the future trajectory of monetary policy. This, in turn, will have a significant impact on the U.S. dollar's movement and, consequently, on USD/CAD.

The Canadian dollar's position is also noteworthy. The recent pullback in oil prices exerts some pressure on the loonie, which remains closely tied to commodity markets. However, the risk of further geopolitical escalations in the Middle East may limit the decline in oil prices, providing some support for the Canadian currency.

This image is no longer relevant

Additionally, an unexpected increase in Canada's annual inflation rate to 2.6% in February may deter traders from taking aggressive bearish positions against the Canadian dollar, which further limits USD/CAD's upside potential.

From a technical perspective, spot prices remain above the 100-day Simple Moving Average (SMA), suggesting caution before assuming the continuation of last week's decline. Moreover, mixed oscillators on the daily chart fail to fully confirm a bearish outlook, as they are gradually attempting to shift into positive territory.

The nearest resistance for USD/CAD is located at the 50-day SMA near 1.4350. If the pair successfully breaks above this level, it could potentially reach the 1.4400 round level.

On the other hand, support is found below the 1.4300 round level, near yesterday's low at 1.4260. Beyond that, the next key supports lie at the 100-day SMA and the 1.4200 psychological level.

Overall, the current market situation demands close monitoring of economic data and political developments.

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

Euro Hits the Ceiling

Bets are now closed, ladies and gentlemen! Many have already played out. The EUR/USD's hesitation to rise following the Bundestag's approval of Friedrich Merz's fiscal stimulus package indicates that this

Marek Petkovich 23:43 2025-03-19 UTC+2

Stock market pays dear cost for Washington's rhetoric

The boomerang effect: what goes around, comes around The US is retreating from globalization, and it is only a matter of time before it faces the consequences. According

Marek Petkovich 09:51 2025-03-19 UTC+2

XAU/USD. Analysis and Forecast

Gold has halted its upward movement as it attempts to consolidate at new all-time highs around $3,045, with bulls taking a pause ahead of the FOMC meeting results. The Federal

Irina Yanina 09:41 2025-03-19 UTC+2

How Might Markets React After the Fed Meeting? (Expecting a Sharp Decline in GBP/USD and a Drop in #SPX)

Today, the market will focus on the Federal Reserve's final decision on monetary policy. It is expected to bring nothing new, so the main topic will remain the same

Pati Gani 08:27 2025-03-19 UTC+2

What to Pay Attention to on March 19? A Breakdown of Fundamental Events for Beginners

There are few macroeconomic events scheduled for Wednesday, which suggests that volatility for both currency pairs may remain low until the evening. The dollar continues to show signs of weakness

Paolo Greco 06:44 2025-03-19 UTC+2

GBP/USD Pair Overview – March 19: The Inertial Growth Continues

On Tuesday, the GBP/USD currency pair did not attempt to correct once again. There was no macroeconomic background that day, but it is difficult to determine what is currently better

Paolo Greco 02:34 2025-03-19 UTC+2

EUR/USD Pair Overview – March 19: What Will the Fed Meeting Change?

The EUR/USD currency pair continued to trade upward on Tuesday. Although the upward movement is weakening, the euro remains strong while the US dollar keeps falling. This is happening despite

Paolo Greco 02:34 2025-03-19 UTC+2

The Euro Fires a Bazooka

The last time Germany armed itself was in the 1930s, it led to World War II. Today, German militarization is welcomed. According to Bloomberg estimates, fiscal stimulus packages worth around

Marek Petkovich 23:46 2025-03-18 UTC+2

WTI Gains Support from Rising Geopolitical Tensions in the Middle East

For the third consecutive day, West Texas Intermediate (WTI) crude oil is attracting buyers. Currently, the commodity is trading slightly above the key psychological level of $68.00, having gained over

Irina Yanina 18:24 2025-03-18 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.