The USD/CAD currency pair ended the day around the 1.3415 level, following a surge above 1.3500 and surpassing the 200-day Simple Moving Average.

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• The USD/CAD closed near the 1.3415 area after jumping to a high above 1.3500, above the 200-day SMA.

The pair currently trades last at 1.34159.

The previous day high was 1.3399 while the previous day low was 1.3356. The daily 38.2% Fib levels comes at 1.3373, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3383, expected to provide support.

The USD/CAD closed with gains on Tuesday but failed to consolidate above the 200-day Simple Moving Average (SMA), closing near 1.3415 but securing the 100-day SMA. The USD strengthened on the back of a sour market mood on the US front. On the other hand, the Canadian dollar managed to mitigate its losses, supported by an upward movement in Oil prices, its main export commodity, the West. Both economic calendars remained empty as investors’ eyes are on the Consumer Price Index figures from the US, from Jully scheduled for Thursday.

In that sense, investors’ expectations on the next Federal Reserve (Fed) movements will dictate the pair’s pace in the week. As Jerome Powell stated, that decision will depend on incoming data, and inflation figures from the US will likely impact the bets placed for the next September meeting.

According to the CME FedWatch tool, tightening expectations for the Federal Reserve remains low. The odds of a hike stand near 14% for the September meeting and rise near 30% in November. However, those odds will likely be impacted by inflation figures on Thursday, also dictating the pace for the bond market and the USD.

According to the daily chart, the technical outlook for the USD/CAD remains neutral to bearish as the bulls show signs of bullish exhaustion. The Relative Strength Index (RSI) has turned flat above its midline, while the Moving Average Convergence (MACD) presents neutral green bars. On the bigger picture, the pair is above the 20 and 100-day Simple Moving Averages (SMA) but below the 200-day SMA, suggesting that the bears are struggling to challenge the overall bullish trend and that the buyers still have the upperhand.

Support levels: 1.3320,1.3300, 1.3280.

Resistance levels: 1.3450, 1.3500 (200-day SMA), 1.3550.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3418 at the time of writing. Pair opened at 1.337 and is trading with a change of 0.36 % .

The pair is trading above its 20 Daily moving average @ 1.3231, above its 50 Daily moving average @ 1.3275 , above its 100 Daily moving average @ 1.3399 and below its 200 Daily moving average @ 1.3455

The previous day high was 1.3399 while the previous day low was 1.3356. The daily 38.2% Fib levels comes at 1.3373, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3383, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3351, 1.3332, 1.3307
• Pivot resistance is noted at 1.3394, 1.3418, 1.3438

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