- USD/CAD will set a strength of around 1.4205 at its early European conference on Tuesday.
- The couple uses the Beliche RSI indicator to hold a negative view under 100 cycles.
- The first downward target that can be seen is 1.4151. The immediate level of resistance occurs near 1.4265.
The USD/CAD pair remains in positive territory around 1.4205 during the early European session on Tuesday, supported by a stronger U.S. Dollar. Investors are closely watching the release of Canada’s Consumer Price Index (CPI) inflation data for January, which is expected later in the day.
Market forecasts indicate that headline CPI is likely to rise 1.8% year-over-year in January. On a monthly basis, inflation is projected to increase 0.1%, recovering from the 0.4% decline recorded in December.
Technical Analysis
The 4-hour chart signals a bearish bias for USD/CAD, as the pair remains below the 100-period Exponential Moving Average (EMA). The Relative Strength Index (RSI) also hovers below the midline at 46.25, reinforcing downside momentum.
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Support Levels:
- 1.4151 – February 14 low
- 1.4130 – Lower boundary of the Bollinger Band
- 1.4100 – Psychological support
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Resistance Levels:
- 1.4265 – Upper boundary of the Bollinger Band
- 1.4310 – 100-period EMA
- 1.4380 – February 10 high
If selling pressure intensifies, USD/CAD may retreat toward 1.4130 or even 1.4100. Conversely, a breakout above 1.4265 could open the door for a rally towards 1.4310 and possibly 1.4380 in the near term.
USD/CAD 4-hour chart
