USD/CAD Price Outlook: Attempts to push higher beyond 1.3740
USD/CAD Maintains Weekly Gains Near 1.3700
During early European trading on Tuesday, the USD/CAD pair remains steady around the 1.3700 mark, holding onto its weekly progress. The Canadian Dollar is under pressure as the US Dollar (USD) continues to strengthen, with the US Dollar Index (DXY) climbing close to 97.80 at the time of reporting.
The US Dollar’s resilience persists even after new tariff warnings from former President Donald Trump. On Monday, Trump posted on Truth.Social, cautioning that countries attempting to take advantage of the Supreme Court’s blocked tariff policy—supported by emergency economic legislation—could face even higher tariffs.
Trump stated, "Any Country that wants to ’play games’ with the ridiculous supreme court decision, especially those that have ’Ripped Off’ the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!"
In terms of monetary policy, market participants largely anticipate that the Federal Reserve will keep interest rates unchanged during its March and April meetings.
Meanwhile, the Canadian Dollar remains relatively stable, supported by rising oil prices amid ongoing US-Iran tensions. As Canada is the largest oil supplier to the US, higher oil prices typically attract more foreign investment into the Canadian economy.
Domestically, investors are looking ahead to the release of fourth-quarter Gross Domestic Product (GDP) figures, scheduled for Friday.
Technical Outlook for USD/CAD
Currently, USD/CAD is trading sideways near 1.3700. The price is positioned above the 20-day Exponential Moving Average (EMA), which has started to trend upward, suggesting the potential for a continued recovery if the pair surpasses the January 27 high at 1.3740.
- Immediate support is found at the 20-day EMA, located at 1.3671. A daily close below this level could expose the pair to further consolidation.
- The 14-day Relative Strength Index (RSI) remains within the 40.00-60.00 range, pointing to subdued momentum in the market.
(This technical analysis was generated with the assistance of AI tools.)
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.
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