CAD Looks for a Support Base 4/2/2026

The USD/CAD pair has come under renewed short-term downside pressure after reaching a high near 1.3686 in the previous session, allowing a temporary corrective downtrend to reassert itself.

Technical Outlook – 4-Hour Chart

Despite the recent pullback, simple moving averages are once again acting as a potential support zone, which could help stabilize price action and encourage a rebound. This view is supported by the Relative Strength Index (RSI), which is showing positive signals and suggests that the pair may be attempting to build a support base ahead of a possible recovery.

Expected Scenario

As long as price action remains above the 1.3610 support level — and more broadly above 1.3590 — this is considered a constructive signal. Under this scenario, the pair could target 1.3680 as an initial upside objective. A sustained break above this level would further strengthen recovery prospects, opening the way toward 1.3710.

On the downside, a consolidation below the 1.3590 level would temporarily invalidate the recovery scenario and shift focus lower, with downside targets at 1.3560 initially and potential extension toward 1.3520.

Market Note:
High-impact U.S. economic data is due today, particularly the Non-Farm Payrolls (NFP) report and the ISM Services PMI, which may trigger elevated volatility.

Risk Warning:
Market conditions remain high-risk amid ongoing trade and geopolitical tensions, and all scenarios remain possible.

Risk note
Headline risk is elevated. Use prudent sizing and firm stops; reassess quickly if these trigger levels give way.

S1: 1.3610	R1: 1.3705
S2: 1.3560	R2: 1.3750
S3: 1.3515	R3: 1.3805