Title: USD/CAD Prepares for Forecasted Target Amid Bullish Momentum – A Comprehensive Analysis
Based on content originally published by Economies.com, November 4, 2025
Original Author: Economies.com Financial Analysis Team
Link: [Economies.com USD/CAD Analysis – Nov 4, 2025](https://www.economies.com/forex/usd-cad-analysis/the-usdcad-price-is-getting-ready-to-meet-our-expected-target–analysis-04-11-2025-122392)
The USD/CAD currency pair has steadily advanced in line with bullish expectations, inching closer to the preset target levels suggested by technical and fundamental indicators. As of November 4, 2025, the pair continues to exhibit strength, supported by a convergence of technical patterns, broader market sentiment biased toward the US dollar, and sluggish Canadian economic data.
This analysis will examine the technical dynamics, fundamental drivers, and key price levels that define the short- and medium-term trajectory for the USD/CAD exchange rate. Traders and analysts are now preparing for the achievement of the previously forecasted resistance zone around 1.3925, a level marked as the next prominent upward target.
USD/CAD at a Glance:
– Current Trend: Bullish continuation toward next resistance level at 1.3925
– Immediate Support: 1.3850
– Resistance Zone: 1.3925 – 1.3950
– Momentum Indicators: RSI and MACD reflect sustained bullish pressure
– Key Influencing Factors: U.S. economic strength, oil price volatility, Bank of Canada pivot
Technical Overview
From a purely technical standpoint, the USD/CAD currency pair is in a well-defined uptrend. This pattern has been bolstered by the emergence of a bullish continuation signal identified by various analytical models, including the breakout above the 1.3850 threshold.
As per the original analysis published on Economies.com, the USD/CAD pair has been consolidating gains, forming a bullish flag continuation pattern on the intraday chart. This pattern suggests that the market is temporarily taking profit before preparing for another leg higher.
Key chart observations include:
– Breakout Confirmation: The price broke above a minor descending resistance level, confirming upward momentum.
– Moving Averages: The 50-EMA (Exponential Moving Average) on the 4-hour and daily chart sits below the current market price, offering dynamic support and confirming bullish strength.
– RSI Indicator: Trading above 60 on both 4-hour and daily scopes, signaling ample buying pressure with more room for upside potential.
– MACD: Maintaining a positive divergence with signal lines aligned for continued gains.
Short-Term Forecast:
– As long as price action remains above 1.3850 support, bullish sentiment is expected to persist
– Upside target set near 1.3925, in alignment with both psychological and historical resistance levels
Medium-Term Projection:
If bullish momentum sustains beyond the 1.3925 mark, further resistance may be encountered near the 1.3950–1.4000 zone, which previously acted as a turnaround level in late Q3 2023.
Fundamental Drivers
Understanding the fundamental forces behind the exchange rate helps add depth to technical projections. USD/CAD is highly influenced by relative monetary policy between the United States and Canada, as well as fluctuations in global commodity markets, particularly crude oil.
1. US Dollar Strength Remains Broad-Based
The US dollar remains a favored currency across global FX markets, largely due to a persistently robust U.S. economy and expectations that the Federal Reserve may extend higher-for-longer interest rate policies to tame lingering inflation.
– U.S. Non-Farm Payrolls have consistently beat expectations, supporting the Fed’s hawkish stance
– Core CPI data remains elevated at around 3.4% YoY (as of October 2025), reinforcing tighter monetary policy
– Fed
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