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The USD/CAD pair edges lower during the Asian session on Thursday and moves away from its highest level since August 5, around the 1.3860-1.3865 zone touched the previous day. Spot prices currently trade around the 1.3825 area, down nearly 0.10% for the day amid a modest US Dollar (USD) downtick, though any meaningful corrective decline still seems elusive. The USD Index (DXY), which tracks the Greenback against a basket of currencies, eases from a nearly three-month top as bulls opt to take some profits off the table after the recent strong gains registered over the past four weeks or so. Apart from this, the emergence of fresh buying around Crude Oil prices underpins the commodity-linked Loonie and exerts some downward pressure on the USD/CAD pair. Meanwhile, growing acceptance that the Federal Reserve (Fed) will proceed with modest rate cuts over the next year keeps the US Treasury bond yields elevated near a three-month peak. This, along with the US political uncertainty and geopolitical risks stemming from the ongoing conflicts in the Middle East, should continue to act as a tailwind for the safe-haven buck and offer some support to the USD/CAD pair. Furthermore, the Bank of Canada’s (BoC) decision to lower its key interest rate by 50 basis points (bps) for the first time since the COVID-19 pandemic and the prospects for further rate cuts should cap gains for the Canadian Dollar (CAD). This, in turn, makes it prudent to wait for strong follow-through selling before confirming that the USD/CAD pair has topped out in the near term and positioning for deeper losses.Market participants now look forward to the release of the flash US PMI prints, which, along with the US bond yields and the broader risk sentiment, will drive the USD demand. Apart from this, Oil price dynamics should contribute to producing short-term trading opportunities. Nevertheless, the fundamental backdrop suggests that the path of least resistance for the USD/CAD pair remains to the upside.More By This Author:GBP/JPY Rises Over 1.0% As Political Instability Weighs On The Yen USD/CAD Price Forecast: Bulls Take A Breather Near 1.3800 Ahead Of BoC Rate Decision WTITrades With Positive Bias Around Mid-$71.00s, Just Below Over One-Week Top