The US Dollar is showing significant strength, causing the USDCAD currency pair to target a stable position above the 1.3500 level.

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• USD/CAD aims to stabilize above 1.3500 amid sheer strength in the US Dollar.

The pair currently trades last at 1.35090.

The previous day high was 1.3528 while the previous day low was 1.3449. The daily 38.2% Fib levels comes at 1.3498, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3479, expected to provide support.

The USD/CAD pair faces some selling pressure while attempting to extend upside above the immediate resistance of 1.3540 in the early New York session. The Loonie asset struggles to extend recovery as the US Dollar faces a nominal sell-off after registering a fresh 10-month high at 106.45.

S&P500 opens on a positive note as investors shrug off risks associated with potential government shutdown. The broader market mood is still cautious as the Federal Reserve (Fed) is expected to keep interest rates higher for a longer period. The US Dollar may resume its upside journey as the US Durable Goods Orders data for August outperformed expectations.

Orders for core goods surprisingly expanded by 0.2% while investors anticipated a decline of 0.5%. In the month of July, the economic data contracted significantly by 5.6%. An expansion in orders book for core goods indicates some sort of optimism among firms despite higher interest rates by the Federal Reserve (Fed).

The optimism about the US economic outlook seems uncertain as Fed policymakers are consistently supporting more interest rates from the central bank. Minneapolis Fed Bank President Neel Kashkari said that there was a risk interest rates might have to go higher but added that it was hard to know. Earlier, Fed Governor Kashkari commented that the economy is fundamentally much stronger than projected. Therefore, more rates seem warranted and are needed to remain high to cool things off.

On the oil front, the oil price prints a fresh 10-month high at $92.66 as investors see demand rising due to a higher consumption outlook. Meanwhile, investors await the weekly oil inventories data to be reported by the US Energy Information Administration (EIA), which will be published at 14:30 GMT. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices support the Canadian Dollar.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3514 at the time of writing. Pair opened at 1.3517 and is trading with a change of -0.02 % .

The pair is trading below its 20 Daily moving average @ 1.3543, above its 50 Daily moving average @ 1.3453 , above its 100 Daily moving average @ 1.3402 and above its 200 Daily moving average @ 1.346

The previous day high was 1.3528 while the previous day low was 1.3449. The daily 38.2% Fib levels comes at 1.3498, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3479, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3468, 1.3419, 1.3389
• Pivot resistance is noted at 1.3547, 1.3577, 1.3626

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