USD/CAD Price Forecast: Holds onto gains near 1.3700 in countdown to BoC-Fed policy
The USD/CAD pair clings to Tuesday’s gains around 1.3690 during the European trading session on Wednesday. The Loonie pair reflects strength as the US Dollar (USD) trades higher ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.
At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% higher to near 98.75.
Investors expect the Fed to leave interest rates unchanged in the range of 3.50%-3.75%, as elevated energy prices have de-anchored inflation projections globally. Market participants will pay close attention to the monetary policy statement and Fed Chair Jerome Powell’s speech to get fresh cues on inflation and the United States (US) interest rate outlook.
Ahead of the Fed’s policy, the Bank of Canada (BoC) will announce its monetary policy at 13:45 GMT, in which it is also expected to hold interest rates steady. Market participants will closely monitor remarks regarding the Canadian labor market outlook, with the Unemployment Rate remaining higher at 6.7%.
USD/CAD technical analysis
USD/CAD reflects strength at around 1.3690 as of writing. However, the price keeps a mildly bearish near-term tone as it remains below the 20-period Exponential Moving Average (EMA) at 1.3724.
The Relative Strength Index (RSI) near 44 suggests fading bullish momentum and hints that sellers are gaining incremental control while price remains capped by the overhead EMA.
On the topside, immediate resistance aligns with the 20-period EMA at 1.3724, and a daily close above this barrier would be needed to ease the current downside bias and reopen a push toward 1.3800. Looking down, initial support is seen at the former trend-line-based floor near 1.3593; a sustained break below that area would reinforce the developing bearish phase.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Equity Futures Largely Steady Pre-Bell; Oil Falls Amid Growing Optimism for Middle East Resolution
Valuation drops to a ten-year low! Jensen Huang calls Nvidia the "world's first growth-value stock", but investors don't seem convinced
Nvidia's price-to-earnings ratio has dropped below 17 times, which is only about half of its projected 2025 level. Although revenue and net profit for fiscal year 2027 are expected to grow by 90% and 99% respectively, the company's stock has risen only about 20% this year, significantly lagging behind the Philadelphia Semiconductor Index. Meanwhile, gross margin is expected to decline from 75% in the second quarter to below 72% in the fourth quarter. Rising memory costs and continued pressure from customers developing their own chips, as well as uncertainty over future AI capital expenditures, have become key factors for the market to reassess Nvidia's valuation.
Bitcoin Hashrate Stalls at 934 EH/s — Miners Are Leaving for AI
XRP price prediction splits traders as $27 black swan target ignites debate
Crypto prices
More
