USD CAD Technical Analysis March 11, 2025
As of March 11, 2025, the USD/CAD currency pair has been exhibiting notable movements influenced by both technical indicators and fundamental factors.
Current Price Levels and Technical Indicators:
The USD/CAD pair is currently trading around 1.4470, reflecting a consolidation below this key resistance level. Technical indicators present a mixed outlook:
Moving Averages: The pair is trading below its 200-day exponential moving average (EMA), indicating sustained downward momentum.
Relative Strength Index (RSI): The RSI on the 4-hour chart is approaching overbought territory, suggesting potential for a bearish correction.
Support and Resistance Levels:
Identifying key support and resistance levels is crucial for anticipating potential price movements:
First Support: 1.4335, identified as a key support area that, if tested, could lead to further declines toward 1.4275.
Pivot Level: 1.4449, acting as a pullback resistance that aligns with a 78.6% Fibonacci retracement, indicating a potential area where selling pressures could intensify.
First Resistance: 1.4470, identified as a key resistance level that the USD/CAD pair is currently testing.
Fundamental Factors:
Several fundamental factors are influencing the USD/CAD pair:
Bank of Canada’s Monetary Policy: The Bank of Canada (BoC) is expected to deliver another 25 basis point rate cut, which could impact the Canadian dollar’s strength.
US Dollar Dynamics: The US dollar’s performance remains a significant factor, influenced by various economic indicators and monetary policy decisions.
Oil Prices: As Canada is a major oil exporter, fluctuations in oil prices can significantly impact the Canadian dollar.
Conclusion:
The USD/CAD pair is currently exhibiting consolidation below a key resistance level, influenced by technical indicators and fundamental factors such as the anticipated BoC rate cut and oil price dynamics. Traders should monitor key support and resistance levels, as well as upcoming economic data releases, to assess potential price movements in the near term.
EUR/USD Technical Analysis March 11, 2025