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USD/CAD stabilizes after dropping to its lowest level in over two weeks on Wednesday.
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Technical indicators continue to support a bearish outlook, suggesting potential for further downside.
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Any rebound attempts are likely to face selling pressure and could be limited in scope.
The USD/CAD pair is trading in a tight range near the 1.3600 level during the Asian session, entering a phase of bearish consolidation after hitting a two-week low earlier on Wednesday.
From a technical standpoint, the decisive break below the key 1.3650 support zone overnight has strengthened the bearish case. Daily chart oscillators are beginning to gain downside momentum, indicating that the path of least resistance remains lower. A drop below the next key support at 1.3575 would reinforce the negative outlook and open the door toward the year-to-date lows in the 1.3540–1.3535 region, last seen in June.
A sustained move beneath that region could accelerate the decline further toward the psychologically important 1.3500 level. A clear break there would signal a continuation of the broader downtrend that began from the 1.4800 area—a more than two-decade high marked in February.
On the upside, any rebound is likely to encounter immediate resistance near the 1.3650 breakdown point. Further gains may attract renewed selling interest around the 1.3700 level. Only a sustained move above this resistance zone could trigger short-covering and push the pair toward the monthly high near 1.3775. A breakout beyond that level would challenge the current bearish narrative and potentially set the stage for additional upside.
USD/CAD daily chart
