CAD Within a Bearish Correction Path 2/9/2025

A bearish corrective trend continues to dominate the USD/CAD pair after failing to sustain gains above the psychological barrier of 1.3800.

Technical Outlook – 4-hour timeframe:

The pair has broken below the ascending support line, as shown on the chart, alongside the continuation of a negative crossover in the simple moving averages. This reinforces the bearish daily outlook. In addition, the Relative Strength Index (RSI) is delivering clear negative signals, further supporting downside momentum.

Probable Scenario:

With trading remaining below the previously broken support—now acting as resistance under the role-reversal principle—the bearish bias is likely to dominate. A sustained move below 1.3740 could accelerate the corrective decline, exposing the pair to further downside pressure.

Fundamental Note:

Today’s session will feature high-impact US economic data, including the ISM Manufacturing PMI. This release may trigger heightened price volatility.

Warning: Risks remain high amid ongoing trade and geopolitical tensions, and all scenarios should be considered.

Trading in CFDs involves risks, and therefore all scenarios are subject to potential outcomes. The analysis provided above is not a recommendation to buy or sell but rather an illustrative reading of price action on the chart.

S1: 1.3740	R1: 1.3770
S2: 1.3715	R2: 1.3810
S3: 1.3665	R3: 1.3850