USD/CAD Price Analysis: Holds positive ground near 1.3500, USD attracts buyers

The USD/CAD pair trades in positive territory for the second straight day during the early European session on Thursday.  The pair's recovery is bolstered by the Federal Reserve's (Fed) hawkish stance after holding the interest rate unchanged in its policy meeting on Wednesday. Additionally, a decline in oil prices weighs on the commodity-linked Loonie as the country is the leading oil exporter to the United States. The pair currently trades near 1.3495, gaining 0.26% on the day.

According to the four-hour chart, USD/CAD holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope, which supports the sellers for the time being.

The first resistance level for the pair is seen near the 50-hour EMA at 1.3510. The additional upside filter to watch is near the confluence of the 100-hour EMA and the upper boundary of the Bollinger Band at 1.3530. Any follow-through buying above the latter will pave the way to a high of September 13 at 1.3586, followed by a psychological round figure at 1.3600.

Looking at the downside, the initial support level is located at 1.3465 (a high of September 20). The critical contention is seen at the 1.3400-1.3410 region, representing a psychological figure, the lower limit of Bollinger Band and a low of August 11. Further south, the next downside stop will emerge at 1.3380 (a low of September 19).

It’s worth noting that the Relative Strength Index (RSI) stands above 50, activating the bullish momentum for the USD/CAD pair.

USD/CAD four-hour chart