CAD Holds on to Support Amid Weak Momentum 8/7/2025

During yesterday’s trading, the Canadian dollar faced strong resistance near 1.3685, which effectively capped the upside and pressured the pair lower. At the time of writing, USD/CAD is trading around 1.3655, remaining under the influence of that resistance zone.

Technical Indicators

• The simple moving averages are acting as dynamic resistance, reinforcing bearish pressure from above.
• The Relative Strength Index (RSI) remains below the 50 level, signaling continued bearish momentum.
• Price action continues to respect a descending trend line, maintaining the overall downward structure.

Probable Scenario
The prevailing downtrend remains intact as long as the pair holds below 1.3680. A sustained move lower could lead to:

• 1.3605 as the first support target.

Alternate Bullish Scenario
A confirmed break above 1.3680 would invalidate the short-term bearish setup and open the path for a recovery toward:

• 1.3720, followed by
• 1.3750, if momentum builds.

Conclusion
Bias remains bearish below 1.3680. Any upward move is expected to be corrective unless that resistance is broken decisively.

Warning
Risk remains elevated amid persistent trade and geopolitical tensions. All market scenarios should be considered. Use appropriate risk management.

Risk Disclaimer: Amid global economic uncertainties and trade tensions, risk levels remain high. Traders should proceed with caution and be prepared for a range of market scenarios.

S1: 1.3605	R1: 1.3700
S2: 1.3555	R2: 1.3735
S3: 1.3510	R3: 1.3785