- USD/CAD loses traction around 1.3460 on Friday.
- The pair holds below the 50- and 100-hour EMAs; Relative Strength Index (RSI) stands in bearish territory below 50.
- The first resistance level is seen at 1.3480; 1.3455 acts as an initial support level.
The USD/CAD pair snaps its two-day winning streak and edges lower to 1.3460 during the Asian session on Friday. A rebound in oil prices underpins the commodity-linked Loonie as the country is the leading oil exporter to the United States. Market players await the monthly Canadian Retail Sales for July and the US S&P Global/CIPS PMI data due later on Friday’s North American session.
According to the one-hour chart, USD/CAD holds below the 50- and 100-hour Exponential Moving Averages (EMAs), which supports the sellers for the time being. Meanwhile, the Relative Strength Index (RSI) stands below 50, activating the bearish momentum for the USD/CAD pair.
The immediate resistance level for the pair is seen near the 100-hour EMA at 1.3480. The additional upside filter to watch is near the confluence of the the upper boundary of the Bollinger Band and a high of September 21 at the 1.3515-1.3525 region. 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 flip side, a break below the lower limit of Bollinger Band of 1.3455 will see a drop to a key contention at 1.3400. The mentioned level represents a psychological figure and a low of August 11. Further south, the next downside stop will emerge at 1.3380 (a low of September 19).
USD/CAD one-hour chart
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