USD/CAD Price Analysis: Drops to near 1.3470 followed by the major support

USD/CAD extends its losses for the second session, edging lower to near 1.3470 during the European session on Tuesday. The cautious sentiment prevails ahead of the release of the Consumer Price Index (CPI) data from the United States (US).

The USD/CAD pair could find key support at the major level of 1.3450, followed by the 38.2% Fibonacci retracement level of 1.3442. A break below this level could put downward pressure on the pair to navigate the support region around the previous week’s low of 1.3419 and psychological level of 1.3400.

The technical analysis of the 14-day Relative Strength Index (RSI) is positioned below 50, suggesting bearish momentum for the USD/CAD pair. However, Moving Average Convergence Divergence (MACD) indicates a momentum shift for the USD/CAD pair. This interpretation is based on the MACD line's position above the centerline but shows divergence below the signal line. Traders would likely await the MACD, the lagging indicator, to confirm a directional trend.

On the upside, the immediate resistance appears at the psychological level of 1.3500 and the nine-day Exponential Moving Average (EMA) at 1.3506. A break above the latter could exert upward support for the USD/CAD pair to test the major level of 1.3550, aiming to navigate the region around the psychological level of 1.3600, aligned with March’s high of 1.3605.

USD/CAD: Daily Chart