USD/CAD Forecast: Bears turn cautious above key 1.3760 support
The USD/CAD pair is trading around 1.3765. After a recent fall, sellers are becoming cautious as the price holds above the key support zone of 1.3760–1.3755. This area was earlier seen as resistance but has now become a strong support, slowing down further declines.
The Canadian dollar is gaining some strength due to a slight recovery in crude oil prices. Since Canada is a major oil exporter, rising oil prices usually support the CAD. At the same time, the US dollar is under pressure as traders expect the Federal Reserve might cut interest rates as early as September. This mix is keeping the USD/CAD forecast neutral for now.
There’s also concern around the US raising tariffs on Canadian exports, which could hurt Canada’s trade. Plus, the Bank of Canada is taking a more careful or “dovish” approach in its policy, which may limit further CAD gains.
In terms of forex technical analysis, USD/CAD needs to break below 1.3755 to confirm further downside. If that happens, the next levels to watch are 1.3700 and 1.3670. But if the pair moves above 1.3800 or 1.3840, it might start a fresh uptrend.
Impact:
USD/CAD could stay range-bound. A break below 1.3755 might signal weakness, while a push above 1.3800 could support a bullish move in the short term.
