4-hr USD/CAD: A Set up for 100 Pip Jump
The Dollar remains strong, with buyers firmly in control since the Fed's December comments hinting at fewer 2025 rate cuts. This drove a 400-pip rally in USD/CAD, now facing resistance near 1.4450 as early buyers take profit. Corrections are part of healthy trends, and the pair is testing support at the 23% Fibonacci retracement. A dip below this level toward 38.2% Fibonacci is possible.
For an optimal risk-reward setup, we prefer buying near 1.43, targeting a rise toward or beyond 1.44. This view is reinforced by the Golden Cross—a strong buy signal indicating upward momentum.
However, CPI data today could shift dynamics. If inflation falls short of expectations, the USD might face a deeper correction toward 1.42, aligning with the 50% Fibonacci retracement level.
For an optimal risk-reward setup, we prefer buying near 1.43, targeting a rise toward or beyond 1.44. This view is reinforced by the Golden Cross—a strong buy signal indicating upward momentum.
However, CPI data today could shift dynamics. If inflation falls short of expectations, the USD might face a deeper correction toward 1.42, aligning with the 50% Fibonacci retracement level.
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.