- USD/CAD trades near the 1.3800 area, under pressure after the renewal of the Fed criticism.
- Fears of political interference and tariff threats strongly burden the American dollar.
- Bears, technical indicators suggest more disadvantages; Resistance at 1.3805, 1,3934 and 1.3938.
The USD/CAD pair still drifts lower on Monday, trading nearly 1.3800, because the American dollar remains on the defensive after the wave of political headers. US President Donald Trump sharply criticized the chairman of the Federal Reserve Jerome Powell, accusing him of reducing the rates for political reasons at the end of 2024. Re -pressure on the independence of the Fed is just before the meeting of the central bank policy, and the markets do not expect any changes at the current rate.
Further complicating sentiments, the President of Chicago Fed Austan Goolsbee recorded an escalate in compact -term inflation expectations, strengthening the need for caution. Meanwhile, traders also digest global headers associated with the US trade policy, because Trump’s administration is developing with tariff discussions and facing the main partners before G20 meetings this week in Washington. The wider risk mood favors the Canadian dollar, even when crude oil softens.
On the technical front, USD/CAD shows bears a general structure. The price is in the range of 1,3781–1,3852 of daily. The relative force indicator (RSI) reads 31, suggesting a neutral rush with bears when it is in the threshold sold out. The average movable discrepancy (MacD) flashes a sales signal, repeated by a negative rush (10) reading -0.0444. Although the amazing oscillator remains neutral at -0.0346, the weight of compact and long -term medium medium -sized ones emphasizes inheritance prejudices.
Pressure for sale is supported by the bear signals from 10-day EMA to 1.3934 and 10-day SMA at 1.3938. Wide medium trends also slim, with a 20-day SMA at 1.4103, 100-day at 1.4278 and 200-day at 1,4006. Immediate resistance is 1.3805, then 1.3934 and 1.3938.
