USD/CAD dips slightly below 1.4100 but remains supported by a resilient US Dollar and weak crude oil prices. Despite the pullback, the broader structure still favors buyers while the Loonie stays under pressure.
Entry Zone: Buy dips toward 1.4060 – 1.4080
Stop Loss: Below 1.4020
Targets: 1.4150, then 1.4210 if bullish momentum resumes
Catalyst Watch: Canadian Retail Sales, US Flash PMIs, Oil price trends, Fed rate-cut expectations
Trading Rationale
USD/CAD’s slight pullback remains shallow due to supportive fundamentals:
- USD strength persists after NFP for September came in at 119k, far above market expectations (50k).
- Fed cut expectations fade further — supporting USD demand across the board.
- Canada’s recent inflation and macro data point to softening price pressures, weakening the CAD.
- Crude oil continues to slide, undermining the Loonie and limiting USD/CAD downside.
- Market focus shifts to Canadian Retail Sales and US PMIs for near-term direction.
Technically, USD/CAD remains in an uptrend with strong support at 1.4020. A break above 1.4154 opens the path toward the multi-month high near 1.4211.
Key Technical Zones
Current Price: 1.4090
Potential Resistance: 1.4154 / 1.4211
Potential Support: 1.4021 / 1.3960
DISCLAIMER & CTA
DISCLAIMER: Forex and CFD trading involves substantial risk. This content is for educational purposes only. Trade at your own discretion.
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