Comprehensive USD/CAD Analysis for January 25, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/CAD for 25th January 2024. 

USD/CAD Key Takeaways

• BOC kept interest rates unchanged: The Bank of Canada kept interest rates unchanged yesterday as expected, but hinted that it will cut interest rates later this year. Sluggish price growth and a weak economy have also led to expectations that the central bank will begin gradually lowering policy rates before mid-year. 
• The U.S. PMI is strong: The January manufacturing and service PMI data released by the U.S. yesterday exceeded expectations and were above the 50 line. The strength of the economy has reduced expectations for interest rate cuts again, and the U.S. dollar still maintains an appreciation trend in the short term. 

USD/CAD Technical Analysis

USD/CAD Daily Chart Insights

• Stochastic Oscillator: The indicator once again sent out a bull signal, suggesting that the current exchange rate may still have a probability of continuing to rise. It is worth noting that the current indicators may form a top divergence pattern, and the rise of USDCAD may not last too long. 
• Moving average support: The blue 17-day moving average supports the exchange rate upward in the short term. After touching the moving average yesterday, it formed a big bar. The short-term bullish sentiment is strong, and the exchange rate has continued upward momentum. 

USD/CAD 1-hour Chart Analysis

• Stochastic Oscillator: The indicator is entangled in the overbought area, suggesting that the current exchange rate is about to enter an adjustment, and you cannot enter the market recklessly and do long positions. 
• 7-period moving average: The red 7-period moving average is the moving support of the short-term trend. If it falls below this support, it is clear that the exchange rate has entered into correction. You can focus on the last long opportunity after waiting for the bull signal to be issued again. 

Trading Central Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3490, 
• Bullish Scenario: Bullish sentiment prevails above 1.3490, first target 1.3550, second target 1.3570; 
• Bearish Outlook: In a bearish scenario below 1.3490, first target 1.3470, second target 1.3450. 

Conclusion