**USD/CAD Faces Ongoing Bearish Pressure as Bullish Momentum Stalls**
*Original analysis credit: Economies.com – September 3, 2025*
The USD/CAD pair is encountering persistent bearish pressure, making it increasingly difficult to maintain any short-term upward momentum. As of the trading session on September 3, 2025, the pair is trading below notable technical levels, suggesting bearish dominance could continue unless a significant support or catalyst shifts the current market sentiment.
This analysis explores the current technical and fundamental state of the USD/CAD pair and includes insights from additional financial sources to provide a comprehensive outlook on future movements. All technical references and portions of the original commentary are credited to Economies.com, while market context and updates are supplemented with supporting data from financial institutions and price action analysis.
## Current Technical Picture of USD/CAD
As highlighted in the original source, the USD/CAD pair has opened the week under pressure. Despite sporadic upward attempts, selling forces continue to dominate the chart setup.
**Key technical highlights from Economies.com’s September 3, 2025, analysis:**
– The pair remains below the key resistance level at 1.3600, a level that has repeatedly capped bullish attempts.
– Stochastic indicators are showing a loss of bullish momentum, signaling a likely continuation downward.
– The pair is currently trading within a descending channel that underscores a bearish trend bias.
– The 50-day Exponential Moving Average (EMA50) is providing additional resistance and reinforcing the bearish outlook.
## Forecast and Expectations
Economies.com projects that the USD/CAD pair could see continued downward movement in the coming sessions. The anticipated price path includes:
– **Short-term target:** A potential fall to the primary support level near 1.3480.
– **Continuation scenario:** If bearish pressure holds and the pair breaches below 1.3480, the next support zone could be found near 1.3405.
This outlook holds as long as the USD/CAD pair remains below the resistance at 1.3600, which now acts as a significant ceiling. A breakout above this level would invalidate the current bearish thesis and potentially open the way to a renewed bullish scenario.
### Updated Price Action and Chart Review
As of early September 2025, several candlestick formations suggest indecision among traders, particularly around the 1.3520 mark.
– A succession of lower highs on the 4-hour chart reflects investor hesitance to re-enter bullish positions.
– The MACD histogram is currently flattening around the 0 line, suggesting that the downward momentum is slowing but not yet reversing.
– Volume analysis shows declining demand upon each bullish attempt, aligning with the notion that sellers still command the upper hand.
## Influential Economic Drivers in September 2025
Beyond technicals, macroeconomic and geopolitical developments are significantly influencing the movement of USD/CAD. By evaluating data from additional sources including daily FX updates and central bank announcements, we get a fuller picture of the pair’s trajectory.
### 1. Oil Prices and Their Impact on CAD
Crude oil prices have been relatively resilient in the second half of 2025, with WTI crude hovering near $83 per barrel. The Canadian dollar often tracks oil prices due to Canada’s oil export-heavy economy.
– **Higher oil prices support CAD**, resulting in a natural bearish push on USD/CAD.
– Analyst consensus from Bloomberg reports that oil supply constraints in major producing regions are forecasted to continue through Q4 2025, potentially keeping CAD well-supported.
### 2. Bank of Canada’s Monetary Policy Stance
In its latest policy update, the Bank of Canada (BoC) maintained its interest rate at 5.0 percent, indicating a data-dependent stance moving forward. The central bank acknowledged that inflation is declining but remains above its 2 percent target.
– A more neutral-to-hawkish BoC supports CAD, especially if the Bank signals
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