• The Canadian dollar gained 0.47% vs. the greenback in the week, which was soft throughout the whole week.
  • The US Dollar Index reclaimed the 103.000 mark but ended the week with losses of 1.38%.
  • USD/CAD Price Forecast: A daily close above the 20-DMA could pave the way for a move towards 1.3000.

The USD/CAD is seesawing during the North American session and is recording minimal gains of 0.06% on Friday, after reaching a daily low below 1.2800, later reclaimed by USD/CAD bulls that struggled at the 20-DMA at around 1.2868. At the time of writing, the USD/CAD is trading at 1.2836.

The major benefitted from overall greenback strength, as the US Dollar Index, a measure of the greenback, rose more than 0.23% and is sitting at 103.060, a tailwind for the USD/CAD. Also, a dampened market mood increased appetite for safe-haven peers in the FX space, particularly the buck, while the JPY is the weakest on the week’s last trading day.

Reflection of the above-mentioned are the US equities plunging between 1.51% and 2.49%, reaching fresh 52-week lows. That despite investors’ cheered rate cut of 0.15% by the People Bank of China (PBoC), aimed to stimulate the Chinese economy, which is going to another Covid-19 outbreak that triggered more than one-month lockdowns in Shanghai.

Meanwhile, mixed economic data on the Canadian docket boosted the prospects of the Loonie, which gained 0.47% in the week. Canada’s inflation rate rose by 6.8%, hitting a 31-year high. Furthermore, on Thursday, Statistics Canada reported that prices paid by producers, also known as PPI, came in line with expectations, but Raw Materials skyrocketed to 38.4% y/y, higher than the 31% estimations.

Analysts at TD Securities wrote in a note that the report might keep the Bank of Canada under pressure to bring policy to neutral. They added that although “The Bank has already acknowledged that additional 50bp hikes are likely, today’s report is unlikely to tip the scales towards a 75bp hike.”

 “We continue to look for the Bank to hike by 50bps in June and July to bring the overnight rate to 2.00%, before switching to 25bp hikes from Sept-Jan,” TD Securities analysts noted.

USD/CAD Price Forecast: Technical outlook

Friday’s price action shows that the USD/CAD tumbled below the 20-day moving average (DMA) at 1.2869, and albeit being positive in the session, USD/CAD buyers have been unable to reclaim the level. Still, it’s worth noting that the Relative Strenght Index (RSI), although it fell off the cliff from around 80 readings to 51.49, turned bullish, and is aiming higher, a signal that USD/CAD bulls remain in charge.

That said, the USD/CAD first resistance would be the 20-DMA at 1.2869. Break above would expose the 1.2900 mark, followed by the May 16 daily high at 1.2981, then the figure at 1.3000. On the flip side, the USD/CAD first support would be 1.2800. Once cleared, the next demand zone would be the April 29 daily low at 1.2718, followed by the confluence of the 50 and 100-DMA at 1.2695 and 1.2690, respectively.

Key Technical Levels


Today last price 1.2836
Today Daily Change 0.0014
Today Daily Change % 0.11
Today daily open 1.2826
Daily SMA20 1.2866
Daily SMA50 1.2697
Daily SMA100 1.2692
Daily SMA200 1.2659
Previous Daily High 1.2894
Previous Daily Low 1.2783
Previous Weekly High 1.3077
Previous Weekly Low 1.2893
Previous Monthly High 1.288
Previous Monthly Low 1.2403
Daily Fibonacci 38.2% 1.2825
Daily Fibonacci 61.8% 1.2851
Daily Pivot Point S1 1.2775
Daily Pivot Point S2 1.2723
Daily Pivot Point S3 1.2664
Daily Pivot Point R1 1.2886
Daily Pivot Point R2 1.2945
Daily Pivot Point R3 1.2997



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 


GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 


Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!