USD/CAD Price Analysis: Hovers near day’s low around 1.3470 on subdued US Dollar

USD/CAD faces selling pressure as the US Dollar Index retreats.
Fed policymakers keep avoiding speculating over the timing of rate cuts.
The Canadian Dollar will dance to the tunes of Employment data.

Sagar Dua FXStreet

The USD/CAD pair trades near the day’s low around 1.3470 in Wednesday’s European session as the US Dollar Index (DXY) has corrected to near 104.00 from an 11-week high of 104.60. The USD Index failed to hold strength despite Federal Reserve (Fed) policymakers not being ready to speculate about rate cuts.

The market mood seems asset-specific as S&P500 futures are subdued while investors have underpinned risk-perceived currencies against the US Dollar.

Fed policymakers are uncomfortable about offering any time when the central bank will begin reducing interest rates as they still need more confidence that inflation will sustainably return to the 2% target. Strength in the labor market and resilient consumer spending have faded prospects for inflation returning to 2%.

Meanwhile, the Canadian Dollar will be guided by the Employment data for January, which will be published on Friday. The Unemployment Rate is seen rising to 5.9% from 5.8% in December.

USD/CAD faces selling pressure while attempting to deliver a breakout of the Ascending Triangle formation on a four-hour timeframe. The aforementioned chart pattern indicates a volatility contraction but with a positive bias.

The horizontal resistance of the Ascending Triangle chart pattern is plotted from January 17 high at 1.3542, while the upward-sloping trendline is placed from December 29 low at 1.3178. The Loonie asset has dropped near the 20-period Exponential Moving Average (EMA), which trades around 1.3470.

The 14-period Relative Strength Index (RSI) failed to sustain above 60.00, which indicates lower buying strength at higher levels.

A buying opportunity would emerge if the Loonie asset breaks above the January 17 high at 1.3542, which will drive the asset towards the round-level resistance of 1.3600, followed by the November 30 high at 1.3627.

On the flip side, a breakdown below January 31 low at 1.3359 will expose the asset to January 4 low at 1.3318 and January 5 low at 1.3288.

USD/CAD four-hour chart

USD/CAD

Overview
Today last price	1.3484
Today Daily Change	-0.0002
Today Daily Change %	-0.01
Today daily open	1.3486

Trends
Daily SMA20	1.3454
Daily SMA50	1.3426
Daily SMA100	1.3553
Daily SMA200	1.3477

Levels
Previous Daily High	1.3544
Previous Daily Low	1.3476
Previous Weekly High	1.3476
Previous Weekly Low	1.3359
Previous Monthly High	1.3542
Previous Monthly Low	1.3229
Daily Fibonacci 38.2%	1.3502
Daily Fibonacci 61.8%	1.3518
Daily Pivot Point S1	1.346
Daily Pivot Point S2	1.3434
Daily Pivot Point S3	1.3392
Daily Pivot Point R1	1.3528
Daily Pivot Point R2	1.357
Daily Pivot Point R3	1.3596

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold looks to regain $4,200 amid pre-US CPI repositioning

Gold is stretching higher toward $4,200 on Friday, extending recovery from two-month lows. US Dollar eases in tandem with Oil prices and Treasury yields, awaiting US sentiment data. The tide seems to be turning in favor of Gold, but the daily RSI is still bearish.

Ethereum drops below $2,500 as rising Treasury yields trigger selling pressure

Ethereum (ETH) fell below $2,500 on Thursday, down nearly 4% and extending losses for a third consecutive day. The decline follows rising Oil prices and US Treasury yields over the past few days. The 10Y Note Yield reached a 24-year high at 5.35%, and the 30Y Note Yield climbed above 5.70% earlier on the day, sparking major distributions in the crypto market.

The inflation illusion: How government formulas shape the data

Every month, the government releases a barrage of economic statistics. Employment, inflation, consumer spending, economic growth, and countless other measurements are presented as objective facts that policymakers, investors, and the public can use to understand the economy. But what happens when the methodology used to produce those numbers changes?

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.