USD/CAD Bears Eye Breakdown Below 1.4000

The USD/CAD pair has stabilized above its June low, but bears are eyeing a potential breakdown below the crucial 1.4000 level.

The currency pair currently trades near 1.4050 after finding temporary support following a recent decline, with market participants weighing shifting interest rate expectations and oil price dynamics.

The June low at around 1.4000 serves as a critical support zone, with a decisive break below this level potentially triggering further downside to targets at 1.3950 and then 1.3900.

However, technical indicators such as the Relative Strength Index (RSI) are hovering near oversold territory, suggesting that while bearish momentum persists, a short-term bounce is possible before any sustained breakdown.