- USD/CAD retraces to 1.3570, and holds above the 50- and 100-hour EMAs on the four-hour chart.
- The key resistance level is seen at 1.3600; the initial support level is located at 1.3515.
- Relative Strength Index (RSI) is located in the bullish territory above 50.
The USD/CAD pair loses some ground after being rejected from the 1.3600 barrier during the early European session on Monday. Traders await the Canadian S&P Global Manufacturing PMI for September ahead of the US ISM Manufacturing PMI due later in the North American session on Monday. The pair currently trades near 1.3570, losing 0.06% on the day.
From the technical perspective, USD/CAD holds above the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, which supports the buyers for the time being.
The immediate resistance level for the pair is seen near the confluence of a psychological round figure and the upper boundary of the Bollinger Band of 1.3600. The additional upside filter to watch is near a high of May 31 at 1.3651. Further north, the pair will see a rally to a high of September 5 at 1.3670. Any follow-through buying above the latter will pave the way to a high of September 7 at 1.3695.
On the flip side, the initial support level is located near the 100-hour EMA at 1.3515. any decisive break below the latter will see a drop to the next contention at 1.3450 (a low of May 25). Further south, the next downside stop will emerge at 1.3428, representing the lower limit of the Bollinger Band.
It’s worth noting that the Relative Strength Index (RSI) is located in the bullish territory above 50, which means the path of the least resistance of USD/CAD is to the upside.
USD/CAD four-hour chart