USD/CAD Price Analysis: The critical support zone is located at the 1.3495-1.3500 region

USD/CAD loses momentum for two days in a row amid the USD weakness.
The pair holds below the key 100-hour Exponential Moving Average (EMA) on the one-hour chart.
The first resistance level to watch is 1.3535; the critical support zone is located at the 1.3495-1.3500 region.

Lallalit Srijandorn FXStreet

The USD/CAD pair trades in negative territory for the second consecutive day. The Greenback declined against its rivals due to the downbeat US PMI data and a decline in US Treasury yields. The pair currently trades near 1.3527, up 0.01% for the day.

That said, Business activity in the United States in August expanded at a slow pace. The preliminary S&P Global Composite PMI decreased to 50.4, down from 52.0 previously and below market expectations of 52.0. This is the largest decrease since November 2022. Meanwhile, US Treasury yields retreated from multi-year highs and declines below 4.20%.

From the technical perspective, USD/CAD holds below the 100-hour Exponential Moving Average (EMA), which means further downside looks favorable for the major pair. Meanwhile, the Relative Strength Index (RSI) stands below 50, activating the bearish momentum for the USD/CAD pair for the time being.

Any follow-through buying above 1.3535 will be exposed to further upside. The mentioned level is a confluence of the middle line of the Bollinger Band and the 100-hour EMA. The next upside stop is located at 1.3575 (high of August 18, the upper boundary of the Bollinger Band), followed by a psychological figure at 1.3600. Further north, the pair will see a rally to 1.3650 (a high of May 31).

On the downside, the critical support zone for USD/CAD is located at the 1.3495-1.3500 region, portraying a psychological round figure and the lower limit of the Bollinger Band. The additional downside filter to watch is 1.3475 (Low of August 16) en route to 1.3445 (Low of August 15) and finally at 1.3410 (Low of August 11).

USD/CAD one-hour chart

USD/CAD

Overview
Today last price	1.3527
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.3526

Trends
Daily SMA20	1.3417
Daily SMA50	1.3294
Daily SMA100	1.3388
Daily SMA200	1.3457

Levels
Previous Daily High	1.3604
Previous Daily Low	1.352
Previous Weekly High	1.3575
Previous Weekly Low	1.3437
Previous Monthly High	1.3387
Previous Monthly Low	1.3093
Daily Fibonacci 38.2%	1.3552
Daily Fibonacci 61.8%	1.3572
Daily Pivot Point S1	1.3496
Daily Pivot Point S2	1.3466
Daily Pivot Point S3	1.3412
Daily Pivot Point R1	1.358
Daily Pivot Point R2	1.3634
Daily Pivot Point R3	1.3663

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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