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The USD/CAD pair continued its decline from 1.3965 last week despite a brief recovery. Analysts maintain a bearish bias this week, targeting a retest of the 1.3480 level, with a decisive break below this level potentially resuming the broader downtrend from 1.4791. Key resistance at 1.3709 remains critical; if this level holds, the risk of further declines persists. Broader technical indicators suggest the pair remains under downward pressure in the near term.
For traders, the USD/CAD outlook highlights the importance of monitoring key support and resistance levels. A breakdown below 1.3480 could signal renewed bearish momentum, while a sustained recovery above 1.3709 might trigger short-term volatility. The pair’s performance is closely tied to broader USD strength and crude oil prices, as Canada’s economy is heavily influenced by energy exports. This dynamic makes USD/CAD a key pair for forex traders assessing risk-on/risk-off sentiment.
Looking ahead, traders should watch for potential catalysts such as U.S. Federal Reserve policy signals, Canadian inflation data, and global energy market movements. A sustained break below 1.3480 could accelerate the downtrend toward 1.3000, while a rebound above 1.3709 might attract buyers. Positioning and volatility are likely to remain elevated as the pair approaches these critical levels.
