During Wednesday’s Asian session, the USD/CAD pair is trading in a tight range around 1.3835 at the end of the trading session, but is close to the over-weekly low of 1.3815. The Loonie pair is consolidating as investors await US President Donald Trump’s speech at the World Economic Forum (WEF) in Davos at 13:00 GMT.
At the time of writing, the US Dollar Index (DXY), which tracks the value of the dollar against six major currencies, is cautiously trading near 98.50.
Investors will be watching Trump’s speech closely for modern clues about further measures Washington may take against the European Union (EU) for opposing U.S. control of Greenland.
So far, US President Trump has imposed 10% tariffs on several EU members and the United Kingdom (UK), leaving room for further increases until Washington completes a “complete and complete” purchase of Greenland.
In an interview with the WEF on Tuesday, US Treasury Secretary Scott Bessent urged countries not to retaliate against US tariffs imposed on the Greenland crisis, adding that countries and companies should stop and “let things play out,” Reuters reported.
USD/CAD technical analysis
At the time of writing, the USD/CAD rate is holding steady around 1.3834. The 20-exponential moving average (EMA) has flattened near 1.3837 after steadily drifting lower and is trading slightly above the point, limiting rallying. A close above the 20-day EMA would improve traction in the low term, while failure to regain it would result in price volatility.
The 14-day relative strength index (RSI) of 49 (neutral) confirms a balanced momentum profile.
Measured from the high at 1.4143 to the low at 1.3643, the 50% Fibonacci retracement at 1.3893 is acting as resistance in the current trade. Breaking this barrier could extend gains towards the 61.8% Fibonacci retracement at 1.3952. On the contrary, a continuation of the current decline below 1.3800 may open space for further declines towards the round support at 1.3700.
(The technical analysis for this story was written with the lend a hand of an AI tool.)
Economic indicator
President Trump’s speech
Donald J. Trump is the 47th and current president of the United States. Before entering politics, he was a businessman and television personality. He first became president in January 2017, representing the Republican Party. His second term began in January 2025.
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