USD/CAD Price Forecast: Could Fall Toward 1.3400
The USD/CAD pair is showing weakness and may drop further in the coming days. It is currently trading around 1.3575, but technical signs suggest it might soon break below this level. Traders are cautious as they wait for the Federal Reserve’s next move. Most experts believe the Fed will keep interest rates unchanged, which could lead to some pressure on the US dollar.
On the charts, USD/CAD is stuck in a tight range, but the momentum is leaning downward. If it breaks below the 1.3575 support level, the next targets could be 1.3500 and even 1.3400. The Relative Strength Index (RSI) is below 50, which is a bearish signal and adds to the possibility of a downward move.
The Canadian dollar is also getting support from steady oil prices, which often helps strengthen the CAD. This, along with a possible pause in Fed rate hikes, could push USD/CAD lower in the short term.
Impact:
If selling continues and key support levels are broken, USD/CAD might slide toward 1.3400. However, stronger US economic data could possibly limit the downside.