USD/CAD Technical Analysis March 18, 2025
As of 14:30 PM NPT on March 18, 2025, the USD/CAD currency pair is trading at approximately 1.4290, reflecting a significant increase from the previous session. The pair has shown upward movement, largely driven by the US Dollar’s strength relative to the Canadian Dollar, as well as fluctuating commodity prices and global market sentiment.
Current Price Levels and Technical Indicators:
At the current level of 1.4290, USD/CAD has been trading at a higher range, indicating a bullish sentiment in the market. The recent surge shows positive momentum for the pair.
RSI (Relative Strength Index): The RSI is currently at 63, which suggests the pair is moving toward the overbought zone but still has room to rise before reaching overbought conditions. This indicates that upward movement may continue in the short term.
MACD (Moving Average Convergence Divergence): The MACD is showing a strong bullish crossover, confirming the bullish trend. The MACD line is well above the signal line, indicating strong upward momentum.
Moving Averages: The 50-day simple moving average (SMA) has been acting as support at 1.4200, while the 200-day SMA is providing resistance at 1.4300. The pair is currently hovering near the 200-day SMA, suggesting that it may break above this level if the upward momentum continues.
Support and Resistance Levels:
Support: The immediate support is found at 1.4200, where the 50-day SMA is located. A decline below this level could lead to further pullbacks towards 1.4150, which is another key support level.
Resistance: On the upside, the primary resistance is at 1.4300, where the 200-day SMA is positioned. A break above this resistance could open the door for further gains towards 1.4350 and possibly higher, depending on market conditions.
Fundamental Factors:
Oil Prices: Oil prices continue to be a major driver for the Canadian Dollar, as Canada is a major oil exporter. A rise in crude oil prices has provided support for the Canadian Dollar, but the USD has been resilient despite this, leading to the current bullish trend in USD/CAD.
US Dollar Strength: The US Dollar remains strong due to positive economic data from the United States, including solid job reports and strong consumer spending. The Federal Reserve’s hawkish stance on interest rates continues to support the Dollar.
Monetary Policy Divergence: The Federal Reserve has taken a more aggressive stance with interest rate hikes compared to the Bank of Canada, which has kept rates relatively stable. This divergence in monetary policy has contributed to the USD’s strength against the CAD.
Conclusion:
The USD/CAD pair is currently in an uptrend, with the price nearing key resistance levels. The technical indicators are showing bullish momentum, and the pair is expected to continue testing higher levels, particularly around 1.4300. Traders should closely monitor oil prices and any changes in US economic data, as these factors will influence the pair’s future direction.
EUR/USD Technical Analysis March 18, 2025