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The USD/CAD pair is under bearish pressure as it continues its decline from the 1.3965 level. Key technical levels include daily pivots at 1.3733 (S1), 1.3766 (P), and 1.3801 (R1). The intraday bias remains negative, targeting the 61.8% Fibonacci retracement at 1.3665. A decisive break below this level could extend the downward trend toward the 1.3480 support. On the upside, a move above 1.3803 may temporarily reverse the bias but is unlikely to sustain gains without strong follow-through.
For traders, the 1.3665 level is critical. A breakdown here would signal a deeper correction, while a rebound above 1.3803 could create short-term volatility. The pair's movement is influenced by broader USD strength and crude oil prices, as CAD is a commodity-linked currency. Gulf investors should monitor U.S. Federal Reserve policy and oil price fluctuations, which directly impact CAD's value.
The next 48 hours will be pivotal. A sustained close below 1.3665 would validate the bearish scenario, while a rejection at this level might trigger a countertrend rally. Traders should also watch for potential news on OPEC+ supply decisions and U.S. interest rate expectations, which could amplify USD/CAD volatility.
