USD CAD Technical Analysis March 5, 2025
As of March 5, 2025, the USD/CAD currency pair has experienced notable fluctuations, influenced by recent economic developments and technical factors.
Current Price Levels and Technical Indicators:
In the past few hours, USD/CAD has been trading around the 1.4469 level, exhibiting a rebound from previous lows. Technical indicators present mixed signals:
Moving Averages: The 5-day moving average is at 1.4469, indicating a slight upward momentum. However, longer-term averages, such as the 50-day and 200-day, suggest a broader bearish trend.
Relative Strength Index (RSI): The RSI is approaching neutral levels, reflecting a balance between buying and selling pressures.
Support and Resistance Levels:
Key levels to monitor include:
Resistance: A significant resistance is identified at 1.4469. A decisive break above this level could pave the way for further gains, potentially targeting the 1.4625 to 1.4845 zone.
Support: On the downside, support is observed around 1.4335. A breach below this level could lead to further declines toward 1.4205.
Fundamental Factors:
Several fundamental factors are influencing USD/CAD:
Trade Policies: The potential implementation of U.S. tariffs on Canadian exports has created uncertainty, impacting the Canadian dollar’s valuation. The looming threat of a 25% tariff on all Canadian exports to the U.S. could potentially reduce Canada’s economic growth by 2.5 percentage points, potentially causing a recession.
Monetary Policy: The Bank of Canada’s recent decision to maintain interest rates at 3.25% reflects a cautious approach amidst global economic uncertainties. This stance influences the loonie’s valuation against other currencies.
Commodity Prices: As a major exporter of commodities, fluctuations in global commodity prices, particularly oil, have a direct impact on the Canadian dollar. Recent stability in oil prices has provided some support to the loonie.
Conclusion:
The USD/CAD pair is navigating a complex landscape shaped by technical patterns and fundamental developments. Traders should monitor the resistance level at 1.4469 and the support around 1.4335 for potential trading opportunities. Staying informed about trade policies, monetary decisions, and commodity price movements will be crucial in anticipating future price movements in this currency pair.
EUR/USD Technical Analysis March 5, 2025