The USD/CAD pair is trading near a six-month low, with a bearish outlook prevailing. The Canadian Dollar (CAD) has strengthened, supported by higher oil prices and expectations for further easing by the Bank of Canada (BoC).

US Dollar

The US Dollar (USD) is attempting to recover, but it remains under pressure due to expectations for continued Fed rate cuts. The US Dollar Index (DXY) is trading above 100.20.

Economic Data

Investors will focus on the US Personal Consumption Expenditure (PCE) Price Index for August, which is expected to show a slight acceleration in inflation.

Technical Analysis

The USD/CAD pair has broken below a key support level, indicating a bearish trend. The 20-day Exponential Moving Average (EMA) is declining, suggesting further downside. Support levels are at 1.3400, 1.3360, and 1.3340.