USD/CAD Price Outlook: Dips to Near 1.3650, Eyes Key Support at 8-Month Low
By tredu.com • 6/12/2025
Tredu
USD/CAD Price Forecast: Nearing 1.3650 as Bears Target 8-Month Low
The USD/CAD pair is seeing renewed bearish momentum in early Thursday trading, slipping to 1.3660 during the Asian session. This drop follows a weak bounce in the prior session and continues the pair's downward trajectory within a falling channel pattern.
Key Technical Indicators
- Current price: 1.3660
- Support 1: 1.3634 (8-month low, June 5)
- Support 2: 1.3450 (channel base)
- Resistance: 1.3695 (9-day EMA)
- RSI (14-day): Near 30, suggesting bearish bias remains
Bearish Outlook Remains Intact
The 14-day RSI staying just above 30 indicates sustained bearish pressure. A drop below this threshold would signal an oversold condition, possibly leading to a short-term corrective rebound. However, staying below the 9-day EMA reinforces weaker momentum.
Should the pair break below 1.3634, a move toward 1.3450 and then 1.3419 (lowest since Feb 2024) could materialize, deepening the bearish setup.
What to Watch
- Break below 1.3634: Could intensify downside
- Rebound signs near RSI 30: Could hint at correction
- US Dollar Index (DXY) and oil prices may also affect CAD performance
More on FX Markets:
- Live USD Index and Technical Chart
- How Crude Oil Impacts CAD
- Rate Cuts and Forex Volatility
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