USD/CAD Price Analysis: Extends its downside below the 1.3500 area ahead of the Canadian inflation data

USD/CAD remains on the defensive around 1.3476 ahead of Canadian inflation data.
The pair holds below the 50- and 100-hour EMAs; Relative Strength Index (RSI) stands in bear territory below 50.
The key resistance level is seen at the 1.3500-1.3510 region; 1.3470 acts as an initial support level for the pair.

Lallalit Srijandorn FXStreet

The USD/CAD pair remains under selling pressure below the 1.3500 mark during the early European session on Tuesday. A surge in oil price lift the commodity-linked Loonie against the US Dollar (USD). At the press time, the pair is losing 0.07% on the day to trade at 1.3476. Market players await the Canadian Consumer Price Index for August ahead of the highly-anticipated FOMC monetary policy meeting on Wednesday.

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 critical resistance level for the pair is seen at the 1.3500-1.3510 region, representing the confluence of the 50-hour EMA, psychological round mark, and the upper boundary of the Bollinger Band. Any follow-through buying above the latter will pave the way to the 100-hour EMA at 1.3520. 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 lower limit of Bollonger Band at 1.3470 acts as an initial support level for USD/CAD. A breach below the latter will see a drop to 1.3445 (a low of August 15). Further south, the next downside stop is located near a low of August 11 at 1.3412.

USD/CAD one-hour chart

USD/CAD

Overview
Today last price	1.3475
Today Daily Change	-0.0011
Today Daily Change %	-0.08
Today daily open	1.3486

Trends
Daily SMA20	1.3572
Daily SMA50	1.3418
Daily SMA100	1.3402
Daily SMA200	1.3464

Levels
Previous Daily High	1.3528
Previous Daily Low	1.3472
Previous Weekly High	1.3639
Previous Weekly Low	1.3493
Previous Monthly High	1.364
Previous Monthly Low	1.3184
Daily Fibonacci 38.2%	1.3493
Daily Fibonacci 61.8%	1.3507
Daily Pivot Point S1	1.3463
Daily Pivot Point S2	1.3439
Daily Pivot Point S3	1.3406
Daily Pivot Point R1	1.3519
Daily Pivot Point R2	1.3552
Daily Pivot Point R3	1.3576

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.

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