USD/CAD Price Analysis: Hovers around 1.3530, awaits Fed Powell's speech

USD/CAD could extend its losses toward the 1.3500 psychological support level.
Technical indicators suggest bearish momentum in the pair.
A break above the 1.3550 could reach the seven-day EMA at 1.3596.

Akhtar Faruqui FXStreet

USD/CAD extends its losses for the second successive day, trading lower around 1.3530 during the European session on Friday. The weakened US Dollar (USD) exerts pressure and undermines the pair. Furthermore, the rebound in WTI prices could provide support to the Canadian Dollar (CAD), consequently putting downward pressure on 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 shows the divergence below the signal line, indicating a bearish momentum in the USD/CAD pair.

Furthermore, the 14-day Relative Strength Index (RSI) below 50 indicates a dovish sentiment, indicating that the USD/CAD pair could meet the support around the psychological level around 1.3500, followed by the next support at 1.3450 level.

On the upside, the major level at 1.3550 could act as a key barrier following the seven-day Exponential Moving Average (EMA) at 1.3596 lined up with the psychological level at 1.3600.

A decisive breakthrough above the latter could open the doors for the USD/CAD pair to explore the barrier around 23.6% Fibonacci retracement at 1.3621.

A resurgence in the US Dollar (USD) could motivate the bulls in the USD/CAD pair to target the significant level at 1.3650, with the possibility of reaching the weekly high at 1.3661 if it successfully surpasses the mentioned resistance.

USD/CAD: Daily Chart

USD/CAD: other technical levels to watch

Overview
Today last price	1.3533
Today Daily Change	-0.0036
Today Daily Change %	-0.27
Today daily open	1.3569

Trends
Daily SMA20	1.3699
Daily SMA50	1.3685
Daily SMA100	1.356
Daily SMA200	1.3518

Levels
Previous Daily High	1.3627
Previous Daily Low	1.3552
Previous Weekly High	1.3766
Previous Weekly Low	1.3594
Previous Monthly High	1.3899
Previous Monthly Low	1.3541
Daily Fibonacci 38.2%	1.3581
Daily Fibonacci 61.8%	1.3598
Daily Pivot Point S1	1.3539
Daily Pivot Point S2	1.3508
Daily Pivot Point S3	1.3464
Daily Pivot Point R1	1.3613
Daily Pivot Point R2	1.3657
Daily Pivot Point R3	1.3687

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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