USD/CAD Forecast: Bearish Momentum Persists Below 1.3600 Ahead of NFP

USD/CAD Forecast: Bearish Option Up for Grabs Near 1.3600

USD/CAD edges up to 1.3595 during Thursday’s early European session, rebounding modestly. However, the downward trend remains intact, pressured by persistent US Dollar weakness and a risk-off mood surrounding the upcoming Nonfarm Payrolls (NFP) data release for June.

Technical Setup Signals More Downside

• The pair continues to trade below the 100-day EMA, confirming a bearish bias.
• The 14-day RSI remains under the 50 mark, currently at 38.75, favoring further losses.
• Support is seen at 1.3555, the lower limit of the Bollinger Band, followed by 1.3505–1.3500, near the September 2024 low.
• Resistance is located at 1.3700, with upside likely capped unless strong bullish catalysts emerge.

Fed Cut Hopes Rise Ahead of NFP

A weaker-than-expected US ADP Employment Report has lifted market expectations for a Fed interest rate cut, weighing on the USD. This makes Friday’s NFP data pivotal for short-term USD/CAD direction.

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