**USD/CAD Price Analysis: Momentum Builds Toward Key Resistance Target**
*Original Source: Economies.com – “The USD/CAD Price Is Getting Ready to Reach Our Expected Target” (July 11, 2025)*
*Original Author: Economies.com Team*
The USD/CAD currency pair has been demonstrating a firm upward trend in recent trading sessions, approaching a key resistance level forecasted by many analysts. With strong bullish signals building and technical indicators supporting continued momentum, the pair appears poised to reach the projected upside target of 1.3830, as outlined in the latest analysis published by Economies.com.
This article explores the price movement of the USD/CAD, considers technical and fundamental influences driving the pair, examines broader economic contexts, and outlines possible scenarios that may emerge in upcoming sessions.
## Current Technical Overview
According to the analysis published by Economies.com on July 11, 2025, the USD/CAD pair has maintained bullish momentum, with recent daily closes reinforcing the path toward the expected resistance target at 1.3830.
Key points from the technical analysis include:
– **Continuation of uptrend:** The currency pair remains within a clear upward channel that began forming in mid-June 2025, supported by strong bullish candlesticks.
– **EMA50 confirmation:** The 50-day Exponential Moving Average (EMA50) continues to provide support below the price, reinforcing the bullish outlook and indicating buying activity from traders.
– **MACD signal:** The Moving Average Convergence Divergence (MACD) indicator shows strong bullish momentum. The MACD line remains above the signal line, with widening histograms suggesting an increase in buying pressure.
– **Stochastic indicator:** The Stochastic Oscillator is in an overbought territory but has not yet flashed a signal for a reversal, which implies there is still room for further upward movement before a potential correction occurs.
The current price behavior allows for a reasonably confident projection that the pair could soon test the 1.3830 level, barring unexpected economic data releases or geopolitical developments.
## Short-Term Projection
Economies.com’s technical outlook supports the idea that the USD/CAD pair is on an upward path, targeting the 1.3830 resistance level in the near term. This projection is largely based on the consistency of bullish trading sessions and the supporting role played by both technical indicators and trend dynamics.
Here’s what the market is watching for in the next few trading sessions:
– **Break above 1.3740:** A decisive daily close above the 1.3740 resistance mark would add further confirmation to a potential climb to the 1.3830 objective.
– **Support at 1.3620:** Should there be a reversal, the 1.3620 level is viewed as immediate support. Holding above this threshold means the bullish outlook remains intact.
– **Next resistance zone:** If 1.3830 is breached, traders will start positioning for the next target near 1.3900 or the psychological 1.4000 area.
## Broader Fundamental Factors Influencing USD/CAD
While technical analysis provides one side of the equation, economic factors also play a significant role in the price movement of any currency pair. For USD/CAD, the primary drivers come from divergences in U.S. and Canadian monetary policies, oil prices, and macroeconomic indicators.
Here are the key factors currently influencing the pair:
### 1. Diverging Monetary Policies
– **Federal Reserve Policy:** The U.S. Federal Reserve has maintained a hawkish stance through most of 2025, keeping interest rates elevated to control inflation. In June 2025, the Fed’s FOMC indicated that rate cuts are unlikely before Q4 2025, with inflation still hovering above its 2% target.
– **Bank of Canada (BoC) Outlook:** In contrast, the Bank of Canada signaled a more neutral, and possibly dovish
Read more on USD/CAD trading.