USD/CAD

USD/CAD Weekly Outlook: June 3-7, 2024

After a bearish pullback last week holding above key medium-term supports, USD/CAD faces mixed signals. The U.S. dollar remains firm amid sticky inflation and hawkish Fed tones, while the Canadian economy shows softness with subdued GDP growth and BoC dovish hints. Technically, the pair trades within an ascending channel near 1.3625, with short-term momentum waning but the medium-term trend intact. Watch critical supports at 1.3580 and 1.3455 for potential tests, while resistance at 1.3705 must be cleared to resume upside. Upcoming U.S. jobs data could be a key catalyst. Stay alert for shifts around these levels.

Original analysis by ActionForex.com

The U.S. dollar continues its upward momentum following strong gains in June, driven by the Federal Reserve’s hawkish interest rate stance, robust economic data, and diverging global monetary policies. As rates in the U.S. rise while other major economies remain more accommodative, capital flows into dollar assets intensify, reinforcing the greenback’s appeal amid ongoing global uncertainties. Key trading partners like the euro and yen have weakened against the dollar, highlighting the currency’s relative strength and safe-haven status. For investors and policymakers, monitoring these dynamics will be crucial as we head deeper into 2024.

U.S. dollar strength extends beyond June’s rally as robust U.S. growth, hawkish Fed policies, and global central bank divergence drive demand. Interest rate differentials and geopolitical uncertainties bolster the greenback’s appeal, pressuring rivals like the euro and sterling. The dollar’s momentum shapes Forex dynamics heading into H2 2024. #Forex #USD

USD/CAD has been range-bound, but RBC warns that the upcoming Canadian jobs report could spark a sharp move in the loonie. A stronger-than-expected employment print may prompt a notable CAD rally, reflecting shifting market positioning and potential BoC rate outlook changes.

The U.S. dollar retreats after May’s ISM Services PMI hits 50.0, signaling stagnant growth and easing inflation pressures. Treasury yields drop as rate cut odds rise, boosting EUR/USD, GBP/USD, USD/CAD, and USD/JPY. Markets now eye faster Fed easing amid cooling economic momentum.

USD/CAD mid-day sees consolidation near 1.3700 amid mixed technical signals. Resistance at 1.3761 must be cleared for bullish momentum; support at 1.3602 critical to hold. Macroeconomic drivers, including Fed policy outlook and oil price fluctuations, will shape near-term moves. Traders stay cautious as the pair balances between recovery attempts and downside risks. #forex #USDCAD #technicalanalysis

USD/CHF shows early signs of recovery after a bearish phase, stabilizing above key support at 0.9150. With a potential break above resistance at 0.9265 and bullish signals near the 50-day EMA, momentum could shift upward—watch closely for confirmation or a reversal.
Details: economies.com/forex/usd-cad-analysis/the-usdchf-price-is-attempting-to-recover–analysis-03-10-2025-121618

USD/CAD has broken above the key 1.3600 resistance level amid strong bullish momentum, supported by robust US economic data and softer crude oil prices weakening the Canadian dollar. With technicals signaling further upside toward 1.3700 and 1.3800, this breakout may mark a sustained upward trend ahead.
Adapted from Economies.com’s latest analysis on USD/CAD price action.

USD/CAD breaks key resistance at 1.3680, signaling bullish momentum driven by strong US economic data, steady Fed policy, and softer oil prices. Watch for potential advances toward 1.3800 and 1.3850 as technical and fundamental factors support continued USD strength against CAD in October 2025.

USD/CAD rallies into a key resistance zone near 1.3620–1.3650 amid a broadly stronger U.S. dollar supported by Fed hawkishness and resilient U.S. economic data. Meanwhile, the Canadian dollar faces headwinds from a dovish Bank of Canada stance and subdued labor market signals. Watch energy prices and risk sentiment as critical factors shaping the next move.