USD/CAD Price Analysis: Extends its downside around 1.3500 amid a surge in crude oil prices
- USD/CAD attracts some sellers and trades in negative territory for the sixth consecutive day on Friday.
- The pair holds below the 50- and 100-hour EMAs; the Relative Strength Index (RSI) stands below 50.
- The immediate resistance level for the pair is seen at 1.3530; the 1.3490 acts as an initial support level.
The USD/CAD pair extends its downside around the 1.3500 mark during the early European session on Friday. A rally in crude oil prices near the highest level since November 2022 boosts the commodity-linked Loonie against the US Dollar (USD) and acts as a headwind for the USD/CAD pair.
According to the one-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. Additionally, the Relative Strength Index (RSI) stands below 50, activating the bearish momentum for the USD/CAD pair for pair.
The immediate resistance level for the pair is seen at 1.3530, representing the 50-hour EMA and the upper boundary of the Bollinger Band. Any follow-through buying above the latter will pave the way to 1.3553 (the 100-hour EMA). The additional upside filter to watch is near a high of September 13 at 1.3586, followed by a psychological round figure at 1.3600.
Looking at the downside, the 1.3490 acts as an initial support level for USD/CAD. The mentioned level portrays the lower limit of the Bollinger Band. A breach below the latter will see a drop to 1.3475 (a low of August 16). Further south, the next downside stop is located at 1.3445 (a low of August 15) en route to a low of August 11 at 1.3412.
USD/CAD one-hour chart
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Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
