Predicting the exchange rate is a dynamic category which, depending on the global situation, depends on various factors. In this paper fundamental and technical determinants of exchange rates are defined as well as the influence of each of the determinants on the exchange rate. The objective of this paper was to define fundamental and technical determinants of exchange rates and to analyze how fundamental and technical factors influence exchange rate movement. From the statistical model which contains 2 fundamental determinants and 1 technical determinant it was concluded that there is a significant influence of fundamental determinants on the USD/CAD exchange rate. Specifically, oil price has a negative effect and the difference in interest rates has a positive effect on USD/CAD exchange rate. The technical determinant, Relative Strength index, has shown the tendency of USD/CAD to move in trends and that the exchange rate changes during the observed period were uniform. The statistical model which contains only fundamental determinants has shown the same results. Technical analysis has shown the technical determinants to be effective at predicting the exchange rate movement, which implicates that technical analysis is applicable to predicting USD/CAD exchange rate.