The USD/CAD pair is currently in a phase of bearish consolidation, fluctuating within a narrow trading range below the psychological level of 1.3600.

From a technical standpoint, the recent breakdown of the horizontal support level at 1.3635 has provided a new bearish signal. Oscillators on the daily chart are beginning to show negative momentum, indicating that the path of least resistance for spot prices is downward. A decline below the support level at 1.3575 would confirm the negative outlook and expose the yearly low around 1.3550, followed by the June low.

The downward trajectory could extend toward the key psychological level of 1.3500. A decisive break below this level would create conditions for a renewed move within the previously established descending channel.

On the other hand, any recovery attempt is likely to face immediate resistance at the former support-turned-resistance level of 1.3650. Further upward movement can be seen as a selling opportunity, with gains likely capped near the 1.3700 psychological level. However, a sustained breakout above this area would trigger a short-covering rally, lifting USD/CAD toward the monthly high. A continuation of buying interest beyond that point would invalidate the bearish forecast and pave the way for further gains.