USD/CAD Technical Analysis March 21, 2025
Current Price Levels and Technical Indicators:
As of 5:00 AM GMT on March 21, 2025, the USD/CAD currency pair is trading around 1.4350, reflecting a modest upward movement.
Moving Averages: The pair is trading above the 50-day and 100-day simple moving averages, indicating a bullish trend.
Relative Strength Index (RSI): The 14-day RSI is approaching overbought territory, suggesting potential for a corrective pullback.
Support and Resistance Levels:
Based on current technical analysis, the following support and resistance levels are identified for USD/CAD:
Resistance Levels:
- R1: 1.4400
- R2: 1.4450
- R3: 1.4500
Support Levels:
- S1: 1.4300
- S2: 1.4250
- S3: 1.4200
A breach above the 1.4400 resistance could signal further bullish momentum, while a drop below 1.4300 may indicate a potential reversal.
Fundamental Factors:
Several fundamental factors are influencing the USD/CAD pair:
Federal Reserve (Fed) Outlook: Fed Chair Jerome Powell acknowledged challenges in assessing the broader inflationary impact of tariffs, contributing to a stronger US dollar as investors seek safe-haven assets.
Canadian Economic Sentiment: The Canadian dollar remains under pressure due to weakening investor sentiment amid political uncertainty in Canada.
Global Trade Tensions: Escalating global trade tensions, driven by US tariff policies, have increased demand for the US dollar as a safe-haven currency, impacting the USD/CAD dynamics.
Conclusion:
The USD/CAD pair is exhibiting bullish momentum, trading above key moving averages with the RSI nearing overbought levels. Traders should monitor the 1.4400 resistance and 1.4300 support levels closely. Ongoing global trade tensions and domestic political developments in Canada are likely to introduce volatility, necessitating attentive risk management.
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