Canadian Dollar’s Upward Momentum Loses Steam 23/7/2025

The USD/CAD pair came under renewed bearish pressure after failing to maintain stability above the 1.3670 level. This failure reversed the previously expected bullish scenario, with the pair falling to a session low of 1.3595.

Technical Outlook – 4-Hour Timeframe:

Short-term technical movements confirm a break below the ascending trendline, leading to a shift in momentum toward the downside. The simple moving averages are now pressing down on the price, acting as dynamic resistance, while the Relative Strength Index (RSI) continues to produce bearish signals, indicating weak upward momentum.

Probable Scenario – Bearish Bias:

As long as the pair trades below 1.3660, the bearish outlook is likely to persist. The next support targets are:

• 1.3565, followed by
• 1.3530

Alternative Scenario – Recovery Potential:

A clear breakout above 1.3670 would invalidate the bearish setup and signal a potential bullish recovery, with upside targets at:

• 1.3730, and
• 1.3770

Caution:

Risk remains elevated amid ongoing geopolitical and trade-related tensions. Market volatility may rise, and all scenarios remain possible, making prudent risk management essential.

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: 1.3565	R1: 1.3670
S2: 1.3525	R2: 1.3730
S3: 1.3465	R3: 1.3770