FxWirePro: USD/CAD outlook weaker on renewed downside pressure

• USD/CAD remains under pressure, with sellers firmly in control as the pair moves closer to a potential retest of the 1.3700 handle.

• On Wednesday, the Bank of Canada held rates at 2.25% while the Fed lowered its benchmark funds rate by 25 basis points. .

• The stronger jobs report had fuelled bets on a BoC rate hike in 2026, but those expectations cooled after the central bank’s latest policy announcement.

•On the data front, Canada posted a small monthly international trade surplus in September, reversing a trend of seven consecutive months of deficits, data showed on Thursday.

•It registered a marginal trade surplus of C$153 million ($110.92 million) in September, following a C$6.43 billion deficit in the prior month, Statistics Canada said.

•  Immediate resistance is located at 1.3917(38.2%fib), any close above will push the pair towards 1.4000 (Psychological level).

• Support is seen at 1.3826(38.2%fb) and break below could take the pair towards 1.3775(Lower BB).

Recommendation: Good to sell  around 1.3780, with stop loss of 1.3850  and target price of 1.3700