Skip the U.S. and Buy the Canadian Dollar Instead Before the Fed Cuts Rates

Core Viewpoint - The March Canadian dollar futures are showing a bullish trend, presenting a potential buying opportunity as prices have recently reached a 2.5-month high [1][2]. Group 1: Technical Analysis - The daily bar chart indicates that prices for March Canada dollar futures are trending higher, with the moving average convergence divergence (MACD) indicator in a bullish posture, as the blue MACD line is above the red trigger line and both are trending upwards [1]. - A breakout above the chart resistance at this week's high of 0.7279 would empower bullish sentiment and create a buying opportunity, with an upside price objective of 0.7400 or higher [3]. - Technical support is identified at 0.7225, where a protective sell stop should be placed just below [3]. Group 2: Fundamental Analysis - Recent U.S. economic data has shown improvement, suggesting a sound economy, which is favorable for the Canadian dollar [2]. - The U.S. dollar index ($DXY) is trending down, and lower U.S. interest rates are bearish for the U.S. dollar and bullish for the Canadian dollar, with expectations that the Federal Reserve is likely to cut U.S. rates [2].