USD/CAD 4-Hour Timeframe Analysis
The USD/CAD pair is currently in a consolidation phase following a significant bullish breakout. The price recently surged to the upside, reaching the resistance level at 1.47900, before retracing due to a large volume of seller activity. This retracement drove the price down to the minor key support at 1.43000, and further tested the major key support at 1.41600.
Buyers then regained control, pushing the price upward and breaking through several minor resistance levels, including the 1.44700 mark. Following this breakout, the price has shown signs of accumulation, suggesting a potential stop-loss hunt within the liquidity zone.
A critical area of interest remains the 1.44700 level. Our strategy is to wait for a confirmed breakout above this minor key resistance. Once the 4-hour candle closes above this level, we will closely monitor price action for further confirmation of sustained bullish momentum toward the next key resistance level.
Key Technical Levels:
Resistance: 1.44700, 1.47970 (next minor key resistance)
Support: 1.43000 (minor key support), 1.41600 (major key support)
Fundamental Insight:
As of March 4, 2025, President Donald Trump's administration has implemented new tariffs on imports from Canada, effective immediately. These measures impose a 25% tariff on most Canadian goods entering the United States, with exceptions for energy products like crude oil and natural gas, which are subject to a 10% tariff. (Source: WSJ.COM)
The decision to enforce these tariffs follows a month-long delay intended to allow negotiations addressing issues such as fentanyl smuggling and migration. However, President Trump deemed these efforts insufficient, leading to the activation of the tariffs.
Stricter Canadian Tariffs: These newly enforced tariffs may strengthen the USD due to protectionist measures, increasing upward pressure on USD/CAD.
Canadian Economic Impact: Increased costs on Canadian exports may weigh on the CAD, further supporting USD strength.
Additionally, the USD remains supported by its safe-haven status amid global uncertainties. Any hawkish rhetoric emphasizing U.S. economic resilience could further support USD strength, while dovish signals may lead to CAD appreciation.
Market Outlook:
Given the current technical structure and recent tariff developments, we maintain a bullish outlook on USD/CAD. We will closely monitor the 1.44700 level and observe how price reacts to further trade policy developments.
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial professional before making any investment decisions.
The USD/CAD pair is currently in a consolidation phase following a significant bullish breakout. The price recently surged to the upside, reaching the resistance level at 1.47900, before retracing due to a large volume of seller activity. This retracement drove the price down to the minor key support at 1.43000, and further tested the major key support at 1.41600.
Buyers then regained control, pushing the price upward and breaking through several minor resistance levels, including the 1.44700 mark. Following this breakout, the price has shown signs of accumulation, suggesting a potential stop-loss hunt within the liquidity zone.
A critical area of interest remains the 1.44700 level. Our strategy is to wait for a confirmed breakout above this minor key resistance. Once the 4-hour candle closes above this level, we will closely monitor price action for further confirmation of sustained bullish momentum toward the next key resistance level.
Key Technical Levels:
Resistance: 1.44700, 1.47970 (next minor key resistance)
Support: 1.43000 (minor key support), 1.41600 (major key support)
Fundamental Insight:
As of March 4, 2025, President Donald Trump's administration has implemented new tariffs on imports from Canada, effective immediately. These measures impose a 25% tariff on most Canadian goods entering the United States, with exceptions for energy products like crude oil and natural gas, which are subject to a 10% tariff. (Source: WSJ.COM)
The decision to enforce these tariffs follows a month-long delay intended to allow negotiations addressing issues such as fentanyl smuggling and migration. However, President Trump deemed these efforts insufficient, leading to the activation of the tariffs.
Stricter Canadian Tariffs: These newly enforced tariffs may strengthen the USD due to protectionist measures, increasing upward pressure on USD/CAD.
Canadian Economic Impact: Increased costs on Canadian exports may weigh on the CAD, further supporting USD strength.
Additionally, the USD remains supported by its safe-haven status amid global uncertainties. Any hawkish rhetoric emphasizing U.S. economic resilience could further support USD strength, while dovish signals may lead to CAD appreciation.
Market Outlook:
Given the current technical structure and recent tariff developments, we maintain a bullish outlook on USD/CAD. We will closely monitor the 1.44700 level and observe how price reacts to further trade policy developments.
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial professional before making any investment decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.