USD/CAD Technical Analysis April 4, 2025
Current Price Levels and Technical Indicators:
As of 7:00 GMT on April 4, 2025, the USD/CAD pair is trading at approximately 1.4078.
Relative Strength Index (RSI): The RSI is at 46.47, indicating neutral momentum.
Moving Averages:
The pair is trading near the 20-period Simple Moving Average (SMA), suggesting consolidation.
It is also close to the 50-period SMA, reflecting a lack of strong directional bias.
Support and Resistance Levels:
Support Levels:
Immediate support is observed at 1.4113 (Daily S1).
Further support is noted at 1.4083 (Daily S2).
Resistance Levels:
Immediate resistance is at 1.4193 (Daily R1).
A higher resistance level is identified at 1.4223 (Daily R2).
Fundamental Factors:
The recent movements in the USD/CAD pair are influenced by geopolitical developments, particularly the announcement of new tariffs by U.S. President Donald Trump. On April 2, 2025, President Trump unveiled a comprehensive tariff plan, imposing a 10% levy on nearly all imported goods, with higher rates on selected countries. Notably, Canada and Mexico were exempted from these new tariffs, leading to a strengthening of the Canadian Dollar (CAD) against the U.S. Dollar (USD).
This exemption has bolstered investor confidence in the Canadian economy, contributing to the CAD’s appreciation. Additionally, the U.S. dollar has weakened unexpectedly, defying conventional expectations that tariffs typically strengthen a currency.
Conclusion:
The USD/CAD pair is currently exhibiting neutral momentum, with technical indicators suggesting consolidation. The exemption of Canada from the recent U.S. tariffs has provided support for the Canadian Dollar, contributing to the pair’s current positioning. Traders should closely monitor ongoing trade developments and upcoming economic data releases, as these factors are likely to influence the pair’s trajectory in the near term.
EUR/USD Technical Analysis April 4, 2025