Tuesday, June 24, 2025 2:00 AM EDT
Photo by Michelle Spollen on Unsplash
- USD/CAD edges lower to around 1.3720 in Tuesday’s early European session.
- The pair keeps the negative outlook below the 100-day EMA with a bearish RSI indicator.
- The initial support emerges at 1.3635; the first upside barrier is located at 1.3820.
The USD/CAD pair trades in negative territory around 1.3720 during the early European session on Tuesday. The Greenback weakens against the Canadian Dollar (CAD) as a ceasefire between Iran and Israel comes into effect following four waves of Iranian attacks on Israeli-occupied territories.
Furthermore, the dovish comments from the US Federal Reserve (Fed) policymakers also undermine the US Dollar (USD). Fed Governor Michelle Bowman said Monday she would favor an interest rate reduction at the next policy meeting in July so long as inflation pressures stay muted.
According to the daily chart, the bearish outlook of USD/CAD remains in play as the pair remains capped below the key 100-day Exponential Moving Average (EMA). The path of least resistance is to the downside, with the 14-day Relative Strength Index standing below the midline near 47.75.
The first downside target for the pair emerges at 1.3635, the low of June 18. Extended losses could see a drop to 1.3575, the lower limit of the Bollinger Band. The next contention level for USD/CAD is seen at 1.3540, the low of June 16.
On the bright side, the immediate resistance level is located at 1.3820, the upper boundary of the Bollinger Band. Sustained trading above this level could attract some buyers to 1.3862, the high of May 29. Further north, the next hurdle to watch is 1.3935, the 100-day EMA.
USD/CAD Daily Chart
More By This Author:
EUR/GBP Gathers Strength Above 0.8550 Ahead Of Eurozone/UK PMI Releases WTI Drifts Higher To Near $73.00 On Rising Israel-Iran Tension USD/CAD Gathers Strength To Near 1.3700 As Fed Holds Rate Steady
Disclaimer: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any ...
more
Disclaimer: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. ING forms part of ING Group (being for this purpose ING Group NV and its subsidiary and affiliated companies). The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice.
The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions.
Copyright and database rights protection exists in this report and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of ING. All rights are reserved. ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no. 33031431 Amsterdam). In the United Kingdom this information is approved and/or communicated by ING Bank N.V., London Branch. ING Bank N.V., London Branch is deemed authorised by the Prudential Regulation Authority and is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website.. ING Bank N.V., London branch is registered in England (Registration number BR000341) at 8-10 Moorgate, London EC2 6DA. For US Investors: Any person wishing to discuss this report or effect transactions in any security discussed herein should contact ING Financial Markets LLC, which is a member of the NYSE, FINRA and SIPC and part of ING, and which has accepted responsibility for the distribution of this report in the United States under applicable requirements.
less
How did you like this article? Let us know so we can better customize your reading experience.
