USD/CAD PRICE FORECAST: SEEMS VULNERABLE; COULD TEST 200-DAY SMA NEAR 1.4000 MARK
The USD/CAD pair recently experienced a modest decline, dropping to a fresh daily low amid a slight pullback in the US Dollar.
Prices currently hover around the 1.4075-1.4070 area, indicating potential vulnerability.
A test near the 1.4000 mark could provide insight into the pair's future direction.
The daily RSI is slightly above the neutral threshold of 50, suggesting a balanced market.
a downturn could see the RSI approach oversold conditions, potentially signaling further downside risk.
The 1.4070-1.4075 region serves as immediate support.
The USD's performance is influenced by market expectations regarding Federal Reserve policies, especially concerning interest rate decisions.
Recent data showing a robust labor market have tempered expectations for aggressive rate cuts, providing support to the USD.
The CAD is sensitive to fluctuations in oil prices, given Canada's status as a major oil exporter.
