USD/CAD Price Outlook: Dips to Near 1.3650, Eyes Key Support at 8-Month Low

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