USD/CAD price holds above $1.43 as traders await breakout from consolidation
USD/CAD struggles below key moving averages
The USD/CAD currency pair continues to hover around the 1.43 level, consolidating within a rectangular trading range that reflects market indecision. While the pair remains above the 1.43 psychological level, technical indicators suggest weaker short-term momentum, limiting any decisive breakout.
The U.S. dollar's sluggish performance against the Canadian dollar coincides with bearish sentiment, as the pair trades below key short-term moving averages.
USD/CAD price dynamics (January 2025 - February 2025) Source: TradingView.
Bearish signals persists as USD/CAD trades below EMAs
Technical analysis of the daily chart highlights that USD/CAD remains below the nine-day and 14-day Exponential Moving Averages (EMAs), which currently stand at 1.4372 and 1.4381, respectively. This positioning indicates that selling pressure dominates the short-term outlook. The lack of upside momentum suggests that buyers may struggle to regain control unless a break above the moving averages occurs.
Additionally, the 14-day Relative Strength Index (RSI) consolidates below 50, reinforcing a bearish bias and signaling that the currency pair could face further downside risks. If USD/CAD continues to remain under key resistance levels, a downward move toward the 1.4280 support—marking the lower boundary of the rectangle—remains possible.
Key support and resistance levels
Traders are closely watching the 1.43 level as immediate support. A breach below 1.4280 would strengthen the bearish outlook and could push USD/CAD lower toward the next major psychological support at 1.4200. On the other hand, a break above the nine-day and 14-day EMAs could shift momentum in favor of buyers, leading the pair toward its upper rectangular resistance at 1.4530.
The U.S. dollar's strength, alongside any fluctuations in crude oil prices—which directly impact the Canadian dollar—will remain crucial in shaping USD/CAD’s next move. If the pair clears 1.4381, traders may anticipate a broader push toward 1.4530, but failure to do so could leave the pair vulnerable to further declines.
In previous USD/CAD technical analysis, the pair was observed forming a rectangular trading pattern, with a 1.43 support zone acting as a key level.
