USD/CAD Price Analysis: Trims intraday gains, moves below 1.3700

USD/CAD loses ground ahead of Retail Sales data from Canada.
Technical indicators suggest testing the major support level at 1.3650.
A break above the 1.3700 could meet the resistance at the 21-day EMA.

Akhtar Faruqui FXStreet

USD/CAD cuts intraday gains, trading near 1.3690 during the European session ahead of Canada’s Retail Sales release on Friday. Investors are betting on the likelihood of no further interest rate hikes by the Federal Reserve (Fed), potentially weakening the USD/CAD pair.

The technical indicators for the USD/CAD pair support the current downward trend. The Moving Average Convergence Divergence (MACD) line is below the centerline and the signal line, indicating a bearish momentum in the pair.

Furthermore, the 14-day Relative Strength Index (RSI) below 50 indicates bearish sentiment, indicating that the pair could meet the major support level at 1.3650 aligned with the 50.0% retracement level at 1.3639.

A firm break below the latter could influence the bears of the USD/CAD pair to navigate the support region around 1.3600.

On the upside, if the USD/CAD pair surpasses the psychological barrier of 1.3700, it could test the 21-day Exponential Moving Average (EMA) at the 1.3724 level followed by the 1.3750 major level. A breakthrough above the level could open the doors for the pair to explore the region around the 1.3800 level.

USD/CAD: Daily Chart

USD/CAD: other technical levels to watch

Overview
Today last price	1.3687
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.3696

Trends
Daily SMA20	1.3758
Daily SMA50	1.3673
Daily SMA100	1.3541
Daily SMA200	1.3516

Levels
Previous Daily High	1.3711
Previous Daily Low	1.3651
Previous Weekly High	1.3844
Previous Weekly Low	1.3655
Previous Monthly High	1.3892
Previous Monthly Low	1.3562
Daily Fibonacci 38.2%	1.3688
Daily Fibonacci 61.8%	1.3674
Daily Pivot Point S1	1.3661
Daily Pivot Point S2	1.3626
Daily Pivot Point S3	1.3601
Daily Pivot Point R1	1.3721
Daily Pivot Point R2	1.3746
Daily Pivot Point R3	1.3781

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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