USD/CAD price remains under pressure ahead of jobless claims and PPI data

The USD/CAD price has been under pressure throughout February, maintaining a bearish trajectory alongside a consistently weak relative strength index (RSI).
After consolidating within a tight 0.7% range between 1.4377 and 1.4270 for five days, the pair broke below January’s low of 1.4260 on Wednesday, briefly touching 1.4255 before recovering to close higher.
However, Thursday’s price action saw renewed selling in the Asian session, declining 0.33% to retest the prior day’s low, forming a potential double bottom before rebounding to 1.4290 in the European session. While a near-term bounce is unfolding, key resistance levels remain in focus, with broader bearish pressure still dominant.
USD/CAD price dynamics (January 2025-February 2025). Source: TradingView
USD/CAD tests 1.4255 amid weak RSI and 50 EMA hurdle
The prevailing downtrend remains intact, with price action continuing to struggle below key resistance levels. On the 4-hour chart, the 50-day exponential moving average (EMA) at 1.4340 poses the next technical barrier for further upside. A sustained break above this level would indicate potential short-term recovery, but without broader trend reversal confirmation, upside remains limited.
On the downside, the break below January’s low reinforces selling momentum. If renewed weakness prevails, a sustained move lower could see USD/CAD extend losses toward 1.4200, a psychological and technical support level that may attract buyers. Failure to hold this level would open the door for further downside.
With USD/CAD locked in a bearish trajectory and RSI holding in negative territory, technical indicators continue to favor downside movement. The price action over the next few sessions will determine whether the pair builds enough momentum to reclaim higher levels or extends its decline toward $1.42. Traders will be watching the upcoming U.S. weekly Initial Jobless Claims and Producer Price Index (PPI).
The USD/CAD pair extended gains for the second consecutive day, trading near $1.4330. The Trump administration confirmed that the new tariffs will take effect on March 4, with additional levies on microchips.