USD/CAD price forecast: The USD/CAD bearish structure remains intact, the short -term bounce depends on the support in 1,3700

• The USD/CAD descends to 1,3710 despite Jolts’s strongest data in the US while the operators become cautious before Wednesday’s decision.
• The technical configuration favors bassists with the USD/CAD trapped in a descending channel; 1,3700 acts as a short -term support.
• The impulse indicators suggest exhaustion with the RSI near survey levels and the MACD losing its bearish impulse..

The Canadian dollar (CAD) remains firm against the US dollar (USD) on Tuesday, with the USD/CAD torque down during the American session to quote around 1,3710. The torque had stabilized earlier in the day while the dollar tried a slight rebound, but the pair lost strength despite a report of Jolts employment offers stronger than expected. Market participants are still cautious before the decision of the Bank of Canada (BOC) on Wednesday, with expectations inclined towards the central bank maintaining interest rates without changes.

Going to technical aspects, the widest image still favors bassists. The USD/CA has been caught in a constant bearish trend, forming lower and lowest minimums within a descending channel since March. In the lower part, the immediate support is observed around 1,3700, which has emerged as a short -term floor during recent sessions. A sustained rupture below this level could pave the way to a stronger support about 1,3600, which aligns with the lower limit of the channel. A clean rupture of that area would probably trigger a new wave of sales, potentially exposing the area of ​​1,3520 –1,3500 below.

On the positive side, any recovery would first need to overcome the 21 -day exponential mobile average in 1,3832 – a level of dynamic resistance that has limited the recent rebounds. A rupture above the upper part of the channel and the 1,3850 region would be a more significant sign that the bulls are recovering control, possibly opening the road to the 1,3950 area.

That said, impulse indicators suggest that the bassist impulse may be beginning to fade. The relative force index (RSI) is currently located just above the overall threshold about 35. While this level is not extreme, it does notice that the sale pressure could be close to exhaustion. The RSI has remained below 50 for most of the last month, indicating that sellers have had the advantage for a while. Some buyers can start trying the waters. Meanwhile, the convergence/divergence indicator of mobile socks (MACD) remains in negative territory, but the histogram bars have been decreasing – a sign that the downward impulse is weakening. This flattening suggests that bassists are losing strength, and the pair could be preparing for a short -term rebound if the 1,3700 psychological level continues to maintain.