USD/CAD Drifts Lower Toward 1.3650 Within Consolidation Range

USD/CAD is edging lower within its recent trading range, trickling toward the 1.3650 level as the Canadian dollar finds modest support ahead of the US Non-Farm Payrolls report. The pair remains confined in a well-defined range, suggesting indecision among market participants as they await a fresh catalyst to establish directional momentum. The US Dollar Index has shown mild softness, contributing to the pair's downward drift, while crude oil prices — a key driver for the commodity-linked loonie — remain a background influence. From a technical perspective, the pair is testing the lower boundary of its consolidation zone near 1.3650, with a breakdown below this level potentially opening the door to further losses toward 1.3600. On the upside, resistance is situated near 1.3700–1.3720. With both the Bank of Canada and the Federal Reserve in focus for upcoming policy decisions, traders are maintaining cautious positioning. The NFP release later in the session could serve as the breakout trigger for this range-bound pair.