USD/CAD Price Forecast: Prepares for fresh rally above 1.3700
USD/CAD trades higher at around 1.3695 at the press time. The pair holds a slight bullish bias as it trades above the 20-day exponential moving average (EMA) at 1.3680, suggesting that near-term dips remain supported. The Relative Strength Index (RSI) around 51 hints at neutral-to-firm momentum, indicating that buyers still have a modest edge while the pair consolidates near current levels. Looking up, the pair could extend its advance towards the April 14 high at 1.3793 if it manages to hold above the April 24 high at 1.3715. On the downside, the 20-day EMA at 1.3680 is the immediate support; a sustained break beneath that EMA would expose a deeper correction towards the May 7 low of 1.3620. Canadian Dollar FAQs The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada‘s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the