Key Highlights
- USD/CAD remained in a bearish zone and dropped below 1.3700.
- A key bearish trend line is forming with resistance at 1.3635 on the 4-hour chart.
- EUR/USD is now consolidating gains above the 1.1450 zone.
- Gold prices remain supported above the $3,350 level ahead of the Fed interest rate decision.
USD/CAD Technical Analysis
The US Dollar started a major decline from well above 1.3850 against the Canadian Dollar. USD/CAD declined below 1.3750 and 1.3700 levels.
Looking at the 4-hour chart, the pair settled below the 1.3700 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even declined below 1.3550. The recent low was formed at 1.3539 and the pair is now consolidating losses.
On the upside, the pair could face resistance near the 1.3600 level. The next key resistance sits near the 1.3620 level. There is also a key bearish trend line forming with resistance at 1.3635 on the same chart.
The first major resistance sits at 1.3665. A close above the 1.3665 level could set the pace for another increase. In the stated case, the pair could even clear the 1.3700 resistance. The next major stop for the bulls could be near the 1.3800 resistance.
On the downside, immediate support is near the 1.3540 level. The next key support sits near 1.3500. Any more losses could send the pair toward the 1.3420 level. The main support could be near 1.3250.
Looking at Gold, the price remained above the $3,350 support, and the bulls seem to be now waiting for the key Fed interest rate decision.
Upcoming Economic Events:
- UK Consumer Price Index for May 2025 (YoY) – Forecast +3.4%, versus +3.5% previous.
- UK Core Consumer Price Index for May 2025 (YoY) – Forecast +3.6%, versus +3.8% previous.
- Fed Interest Rate Decision – Forecast 4.5%, versus 4.5% previous.
- US Initial Jobless Claims – Forecast 245K, versus 248K previous.
