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The USD/CAD pair is attempting to re-test the crucial 1.3811 level as the risk-off market sentiment has intensified. S&P500 futures have exacerbated their losses in Tokyo following two consecutive bearish trading sessions, which implies that the risk aversion theme will stay for a while.

In Asia, the US dollar index (DXY) has surpassed the round-level resistance at 113.00 as a result. In addition, 10-year US Treasury rates have shown no signs of weariness despite a meteoric rise to near 4.23 percent.

On a daily scale, the asset has stayed in the grip of bulls after surpassing the upward-sloping trendline created from May 12 high at 1.3077. The formation of purchasing tails following a pullback to around the 20-period Exponential Moving Average (EMA) at approximately 1.3680 implies that the corrective move is over now and the asset will resume its bullish ride.

In addition, the 50-EMA's upward trend at 1.3445 suggests that the upside bias remains intact.

After holding in the positive range of 60.00-80.00, the Relative Strength Index (RSI) (14) tested the region of 40.00-60.00. The momentum oscillator could re-enter the positive zone upon completion of the corrective move.

A break over Wednesday's high at 1.3810 would push the asset toward the round-number support at 1.3900, followed by the prior week's high at 1.3978.

In contrast, a significant slide below the round-level support of 1.3700 will drive the asset toward the low of 1.3565 from October 6. A breach of the latter will result in additional asset deterioration towards the October 5 low of 1.3504.

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