- USD/CAD loses traction near 1.3458 amid the weaker USD.
- The pair holds below the 50- and 100-hour EMAs on the four-hour chart.
- Relative Strength Index (RSI) is located in the bearish territory below 50.
- The immediate resistance level is seen at 1.3495; the initial support level is located at 1.3423.
The USD/CAD pair attracts some sellers around 1.3458 during the early European session on Friday. The downtick of the pair is supported by a correction of the US Dollar (USD) and lower US Treasury yields. Meanwhile, the US Dollar Index (DXY) drops to 105.90 after retreating from 106.83, the highest since November.
From the technical perspective, USD/CAD holds below the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, which supports the sellers for the time being. Meanwhile, the Relative Strength Index (RSI) is located in the bearish territory below 50, which means the path of the least resistance of USD/CAD is to the downside.
The immediate resistance level for the pair is seen near the 50-hour EMA at 1.3495. The additional upside filter to watch is near the 100-hour EMA at 1.3510. Further north, the pair will see a rally to the upper boundary of the Bollinger Band of 1.3536. 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.
On the downside, any decisive break below the lower limit of the Bollinger Band of 1.3465 will see a drop to the next contention at 1.3423 (a low of September 22). Further south, the next downside stop will emerge at 1.3380 (a low of September 19) en route to a low of August 4 at 1.3319.
USD/CAD four-hour chart
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