**USD/CAD Technical Analysis: Extended Upside Momentum Points to Further Gains**
*Based on original content by Economies.com. Expanded and compiled with additional market research and analysis.*
The US dollar has continued to show strength against the Canadian dollar, as evidenced by the consistent upward movement of the USD/CAD currency pair. On October 1, 2025, the pair maintained its bullish trajectory, confirming positive momentum in the global forex market. This article provides an in-depth analysis of the current USD/CAD trend, factors influencing the pair, and the technical indicators that are currently in play. With the benefit of recent price activity and supportive market fundamentals, traders and investors may continue to witness further appreciation in the USD/CAD pair in the short to medium term.
This expanded analysis uses information from the original source article by Economies.com and incorporates additional data and insights from leading financial publications and market resources including Investing.com, DailyFX, and ForexLive for a more comprehensive perspective.
## Technical Overview of USD/CAD
The USD/CAD pair maintained its positive movement on October 1, pushing further into bullish territory. Market behavior suggests the path of least resistance remains upwards, and this momentum continues to be driven by both technical and fundamental variables.
### Key Technical Features
– **Upward Trend Channel**: Price action is developing within an ascending channel, reinforcing the strength of the prevailing bullish pattern. This structure signals that any consolidations or retracements are likely to be seen as buying opportunities by traders.
– **Support Level**: The pair currently finds firm support around the 1.3565 region. This level aligns with the lower boundary of the rising channel and has acted as a consistent floor for recent price pullbacks.
– **Resistance Zone**: Immediate challenges are present at the 1.3630 level. A confirmed breakout above this resistance would likely open the path toward new highs. Economies.com highlighted this area as a potential pivot where bulls may target further gains if surpassed.
– **Moving Averages**: The 50-day and 100-day moving averages are sloping upwards. Price is trading above both indicators, affirming the strength of the uptrend. This technical alignment generally favors buyers and diminishes the probability of a sharp reversal in the near future.
– **Relative Strength Index (RSI)**: RSI on the 4-hour and daily charts remains above the 50-point mark but is not yet in overbought territory (above 70), which implies that there’s still room for further appreciation without necessitating immediate correction.
– **MACD Indicator**: The MACD line remains positioned above its signal line, offering further confirmation of bullish momentum. The histogram readings continue to reflect a positive outlook, suggesting underlying momentum is in favor of buyers.
## Short-Term Forecast and Projection
According to Economies.com, continued movement within the rising price channel increases the likelihood of a sustained bullish move, with an expected next upside target located at 1.3700. If this level is surpassed, the pair may test the psychological level of 1.3750 soon after.
Key Forecast Parameters:
– **Primary Target Level**: 1.3700
– **Secondary Resistance (Extension Target)**: 1.3750
– **Support Base**: 1.3565 (channel floor)
– **Trend Status**: Bullish within established upward sloping channel
– **Trading Bias**: Bullish as long as price trades above 1.3565
## Fundamental Drivers Supporting the Bullish Momentum
### 1. Divergence in Central Bank Policies
One of the primary reasons for the USD/CAD climb lies in the policy divergence between the US Federal Reserve and the Bank of Canada:
– The Federal Reserve has maintained a relatively hawkish stance. Speeches from Fed officials have underscored the likelihood of maintaining higher interest rates for a longer period if inflation fails to fall to target levels.
– In contrast, the
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