USD/CAD PRICE FORECAST: HANGS NEAR MULTI-MONTH LOW; SEEMS VULNERABLE AROUND 1.3800
USD/CAD PRICE FORECAST: HANGS NEAR MULTI-MONTH LOW; SEEMS VULNERABLE AROUND 1.3800
The USD/CAD currency pair has recently been trading near the 1.3800 mark, reflecting a multi-month low.
The pair faces challenges in capitalizing on a brief bounce from the 1.3780 region, its lowest point in six months. Fresh selling pressure has emerged during the Asian session on Tuesday, pushing prices down to the 1.3800 level.
The U.S. dollar remains under pressure due to investor concerns over U.S. tariffs and capital shifts abroad, contributing to the USD/CAD's decline.
The Canadian dollar has been supported by rising oil prices, a key Canadian export, which have surged 3.5% to $64.63 per barrel following new U.S. sanctions limiting Iranian oil exports.
The Bank of Canada has paused its interest rate cuts, maintaining the benchmark rate at 2.75%. This decision has provided support to the Canadian dollar amid ongoing trade uncertainties.
From a technical perspective, the USD/CAD pair appears vulnerable around the 1.3800 level. A decisive break below this support could open the door for further declines, potentially targeting lower support levels.
