Last Updated on September 9, 2026 by Deon
The USD/CAD pair has fallen for a straight session on Wednesday trading near 1.3780 during European trading hours. The USD/CAD pair stays below the level of 1.3800 as sellers keep the short‑term trend in their favor.
Technical signs also show weakness with USD/CAD trading below its main short‑term and medium‑term exponential moving averages. The picture suggests that any bounce may stay small unless buyers can lift the USD/CAD pair above resistance.
USD/CAD Remains Under Bearish Pressure
The daily chart shows USD/CAD moving inside a falling channel meaning the overall technical picture is still bearish.
The USD/CAD pair trades below both the nine‑day and 50‑day Exponential Moving Averages. The shorter EMA is also below the EMA giving more proof that sellers hold the edge right now.
The 14‑day Relative Strength Index sits near 38. While this shows momentum it has not yet hit oversold levels. That means USD/CAD could still drop before technical conditions become stretched.
1.3640 Becomes an Important Support Level
The next key area for USD/CAD traders to watch is around 1.3640 close to the edge of the falling channel.
A steady break below this area could make the bearish view stronger. Let the USD/CAD pair lose more. The next downside target is 1.3481, the lowest level since October 2024.
A move toward those levels would prove that sellers keep controlling the USD/CAD pair.
Resistance Near 1.3819
On the upside the first major resistance sits near 1.3819, where the nine‑day EMA is located.
A steady move above this level could ease short‑term selling pressure.. Usd/CAD would still need to clear the stronger resistance around 1.3918 near the 50‑day EMA to show that the bearish trend is easing.
If buyers can push USD/CAD above this resistance area the pair might move toward levels, including the zone around 1.4248.
Canadian Dollar Shows Relative Strength
The Canadian Dollar has stayed firm against major currencies. FXStreet’s data shows the CAD performing well against the New Zealand Dollar during Wednesday’s session.
For USD/CAD this strength can add to pressure when it is combined with overall weakness in the US Dollar.
Currency traders will keep watching both US Dollar sentiment and Canadian Dollar performance for clues about the big move.
USD/CAD Technical Outlook
The present technical setup favors sellers while USD/CAD stays below 1.3819 and inside the falling channel.
Level Importance
1.3918 Major resistance
1.3819 Initial resistance
1.3800 psychological level
1.3640 Initial support
1.3481 Major downside target
1.4248 Longer‑term upside target
The RSI near 38 gives room for more downside before the USD/CAD pair hits oversold levels. Still traders should watch for a reversal if USD/CAD returns above its key moving averages.
What Could Move USD/CAD Next?
The direction of the US Dollar will stay a factor for USD/CAD. US economic data, Federal Reserve expectations and shifts in risk sentiment can all shape the USD/CAD pair.
At the time moves in commodity markets can affect the Canadian Dollar because Canada exports a lot of energy. Changes in oil prices might therefore add volatility to USD/CAD.
Traders should also keep an eye on the technical levels because a break of either the falling channel support or the resistance zone could give a stronger directional signal.
Final Outlook
USD/CAD stays under pressure after falling for three sessions. The USD/CAD pair trades below 1.3800 and its position below the nine‑day and 50‑day EMAs keeps the short‑term outlook bearish.
A break below 1.3640 could open the path toward 1.3481 while a recovery above 1.3819 would be the sign of better momentum. For a bullish reversal USD/CAD would need to win over the resistance near 1.3918.
For now the technical picture keeps favoring sellers but traders should watch data US Dollar moves and Canadian Dollar strength, before deciding on the next major trend.
