- USD/CAD retreats to 1.3570 and remains above the 50 and 100 EMAs on the 4-hour chart.
- The key resistance level is seen at 1.3600; the initial support level is located at 1.3515.
- The Relative Strength Index (RSI) is in a bullish zone above 50.
The USD/CAD pair loses some ground after being rejected from the 1.3600 barrier during the early hours of the European session on Monday. Traders await the release of the Canadian S&P Global Manufacturing PMI for September, ahead of the US ISM Manufacturing PMI due later in the American session on Monday. At the time of writing, the pair is trading near 1.3570, losing 0.06% on the day.
Technically, the USD/CAD pair remains above the 50 and 100 EMAs on the 4-hour chart, providing support to buyers for the time being.
The immediate resistance level for the pair is observed near the confluence of the round psychological level and the upper boundary of the Bollinger Bands at 1.3600. The additional bullish screen to watch is near the May 31 high at 1.3651. Further up, the pair will see a recovery to a September 5 high at 1.3670. Buying above this last level will pave the way towards the September 7 high at 1.3695.
On the opposite side, the initial support level lies near the 100 EMA at 1.3515. Any decisive break below this last level will trigger a drop to the next support at 1.3450 (May 25 low). Further down, the next support will emerge at 1.3428, which represents the lower boundary of the Bollinger Bands.
It is worth noting that the Relative Strength Index (RSI) is in the bullish territory above 50, which means that the path of least resistance for USD/CAD is to the upside.
USD/CAD 4-hour chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
