USD/CAD Price Forecast: Consolidates below 1.4250/April 2025 highs as traders await US PCE
- USD/CAD is seen consolidating its recent strong gains to the highest level since April 2025.
- Easing inflation fears temper Fed hike bets, weighing on the USD and capping spot prices.
- Bearish Oil prices undermine the Loonie and support the pair ahead of the US PCE data.
The USD/CAD pair enters a bullish consolidation phase during the Asian session on Thursday and currently trades around the 1.4230-1.4225 region, just below its highest level since April 2025 touched the previous day. Traders now seem hesitant and opt to move to the sidelines ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index.
In the meantime, traders scaled back their bets on Federal Reserve (Fed) interest rate increases amid easing inflationary concerns in the face of the recent downfall in Crude Oil prices to the pre-Iran levels. This triggers a modest US Dollar (USD) corrective pullback from the highest level since May 2025 and acts as a headwind for the USD/CAD pair. However, bearish Crude Oil prices continue to undermine the commodity-linked Loonie and limit the downside for the currency pair.
From a technical perspective, the recent breakout through the November 2025 highs, near the 1.4130 area, was seen as a fresh trigger for bulls and suggests that the momentum remains aggressively positive. Moreover, the Moving Average Convergence Divergence (MACD) indicator holds in positive territory with a relatively firm reading, reinforcing the bullish bias. However, the Relative Strength Index (RSI) sits in overbought territory near 88, hinting that upside pressure is stretched.
Hence, it will be prudent to wait for some near-term consolidation or a modest corrective decline before traders start positioning for an extension of the recent well-established uptrend. Nevertheless, the path of least resistance for the USD/CAD pair remains to the upside until momentum eases from overbought readings or a clear lower high forms. This suggests that fresh buying could emerge near the 1.4200 mark, which should limit the downside near the 1.4130 resistance breakpoint.
(The technical analysis of this story was written with the help of an AI tool.)
USD/CAD daily chart
Canadian Dollar Price Last 30 days
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies last 30 days. Canadian Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 2.43% | 2.43% | 1.80% | 3.11% | 3.91% | 3.97% | 3.60% | |
| EUR | -2.43% | 0.02% | -0.61% | 0.65% | 1.44% | 1.52% | 1.14% | |
| GBP | -2.43% | -0.02% | -0.60% | 0.63% | 1.49% | 1.54% | 1.15% | |
| JPY | -1.80% | 0.61% | 0.60% | 1.28% | 2.09% | 2.16% | 1.76% | |
| CAD | -3.11% | -0.65% | -0.63% | -1.28% | 0.79% | 0.82% | 0.51% | |
| AUD | -3.91% | -1.44% | -1.49% | -2.09% | -0.79% | 0.08% | -0.32% | |
| NZD | -3.97% | -1.52% | -1.54% | -2.16% | -0.82% | -0.08% | -0.35% | |
| CHF | -3.60% | -1.14% | -1.15% | -1.76% | -0.51% | 0.32% | 0.35% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
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