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The USD/CAD pair is trading sideways near 1.3658 during the North American session, constrained by April’s 20 high of 1.3650, where the Canadian Dollar (CAD) previously gained 0.34% against the US Dollar. Technical indicators show the Relative Strength Index (RSI) remains bearish, signaling potential downward pressure on the pair. Traders are monitoring whether USD/CAD will break below key support levels or consolidate within the current range.
This sideways movement is significant for forex traders as it reflects a tug-of-war between USD strength and CAD weakness. A sustained move below 1.3600 could trigger further bearish momentum, while a rebound above 1.3650 might attract buyers. The RSI’s bearish divergence also raises concerns about a potential breakdown in the near term.
For market participants, the focus will be on USD/CAD’s ability to hold above critical support levels and whether the RSI aligns with price action. Broader implications include potential spillover effects into other commodity-linked currencies like AUD/USD and NZD/USD, which often mirror CAD’s performance against the USD.
