The US Dollar/Canadian Dollar (USD/CAD) currency pair continues to move within a developing correction and descending channel. At the time of this forecast, the US Dollar to Canadian Dollar exchange rate is 1.3648. Moving averages indicate a short-term bearish trend for the pair. Prices have broken below the signal lines, indicating selling pressure and potential further decline in the pair in the near future. Currently, we should consider an attempt to develop a bullish correction in the Canadian Dollar price and a test of the resistance level near 1.3705. Subsequently, a downward rebound and continued decline in the currency pair on Forex are possible. A potential target for this movement is below 1.3435.
Canadian Dollar Forecast USD/CAD for February 4, 2026
An additional signal in favor of a rise in the Canadian Dollar will be a break of the support line on the relative strength indicator (RSI). A second signal in favor of an uptrend will be a rebound from the upper boundary of the bearish channel. A strong rally and a break of the 1.3875 area would cancel out the downside scenario for the USD/CAD currency pair on Forex. This would indicate a break of the resistance area and continued growth above 1.4065. Confirmation of the pair’s decline should be expected with a break of the support area and a close of the USD/CAD pair below 1.3565.
Canadian Dollar Forecast USD/CAD for February 4, 2026 suggests an attempt to test the resistance area near 1.3705. Subsequently, a continued decline below 1.3435 is expected. An additional signal supporting a decline in the Canadian dollar on Forex will be a test of the resistance line on the relative strength indicator (RSI). A strong rally and a breakout of 1.3875 would cancel out the downward trend in USD/CAD. This would indicate continued declines in the asset’s value, with a potential target below 1.4065.
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