Technical Pressures Constrain USD/CAD Within a Tight Range 6/8/2025

The USD/CAD pair is currently trading within a narrow range, consolidating between the psychological resistance at 1.3800 and the support level at 1.3760.

Technical Outlook:

Technical indicators are showing mixed signals. The Relative Strength Index (RSI) is gradually losing upward momentum, reflecting weakening bullish pressure. At the same time, the 50-period Simple Moving Average (SMA) continues to provide underlying support, attempting to stabilize price action and preserve a mildly bullish bias.

Probable Scenario:

Given the current indecision in price movement, it is prudent to await confirmation before committing to a directional view:

• Bullish Scenario:
  A confirmed breakout above the 1.3800 resistance level would likely signal the resumption of the upward trend, with immediate targets at 1.3840 and 1.3870.
• Bearish Scenario:
  A break below the 1.3760 support level could open the door to further declines, with the next downside target seen at 1.3720.

Warning:
The risk environment remains elevated due to ongoing trade and geopolitical tensions. Sudden volatility is possible, and all scenarios should be accounted for with 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: 1.3760	R1: 1.3800
S2: 1.3720	R2: 1.3840
S3: 1.3680	R3: 1.3875