USD/CAD Price Analysis: Loses traction below the 1.3540 mark, eyes on the key support level at 1.3500

USD/CAD struggles to gain and holds below the mid 1.3500s in the early European session.
The pair holds below the 50-hour EMA; the Relative Strength Index (RSI) stands below 50.
The critical support level is located at 1.3495-1.3510 region; the immediate resistance level is seen at 1.3575.

Lallalit Srijandorn FXStreet

The USD/CAD pair loses traction and edges lower to 1.3532 heading into the early European session on Tuesday. Investors will look to Friday's speech by Fed Chairman Jerome Powell for direction and perhaps insight into the state of the economy. Market participants are placing bets on a 40% likelihood of a last Fed rise by November, according to Reuters.

From the technical perspective, USD/CAD trades within the ascending trend-channel since August 9 on the one-hour chart. Further downside for USD/CAD looks favorable as the pair holds below the 50-hour Exponential Moving Average (EMA). Meanwhile, the Relative Strength Index (RSI) stands below 50, activating the bearish momentum for the USD/CAD pair for the time being.

That said, the critical support zone for USD/CAD is located at 1.3495-1.3510, portraying a confluence of a lower line of an ascending trend-channel, a low of August 21, and a psychological round figure. Further south, the next stop to watch is at 1.3475 (Low of August 16) en route to 1.3445 (Low of August 15) and finally at 1.3410 (Low of August 11).

On the upside, the immediate resistance level for the pair is seen at 1.3575 (high of August 18). The key barrier to watch is the upper boundary of the ascending trend-channel and psychological figure at 1.3600. Any follow-through buying above the latter will see a rally to 1.3650 (a high of May 31).

USD/CAD one-hour chart

USD/CAD

Overview
Today last price	1.3533
Today Daily Change	-0.0012
Today Daily Change %	-0.09
Today daily open	1.3545

Trends
Daily SMA20	1.3382
Daily SMA50	1.3285
Daily SMA100	1.3386
Daily SMA200	1.3454

Levels
Previous Daily High	1.3573
Previous Daily Low	1.3496
Previous Weekly High	1.3575
Previous Weekly Low	1.3437
Previous Monthly High	1.3387
Previous Monthly Low	1.3093
Daily Fibonacci 38.2%	1.3525
Daily Fibonacci 61.8%	1.3543
Daily Pivot Point S1	1.3503
Daily Pivot Point S2	1.3461
Daily Pivot Point S3	1.3426
Daily Pivot Point R1	1.358
Daily Pivot Point R2	1.3614
Daily Pivot Point R3	1.3656

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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