USD CAD Today: Oil Plummets, Currency Pair Follows Suit

The USD CAD currency pair is struggling today to continue its two-day strengthening, although the US Dollar (USD) remains in positive territory. The significant decline in crude oil prices puts additional pressure on the Canadian Dollar (CAD). In European trading on Wednesday, the USD/CAD pair is trading around 1.3590.

The USD/CAD pair faces a major obstacle at the psychological level of 1.3600. A strong penetration above this level could motivate USD/CAD buyers to explore the 21-day Exponential Moving Average (EMA) at 1.3620, followed by the 38.2% Fibonacci retracement level at 1.3840, before reaching the main resistance level at 1.3650.

The technical indicator Moving Average Convergence Divergence (MACD) for the USD/CAD pair gives a potential bullish trend reversal signal. The MACD line is below the midpoint and has crossed above the signal line. The crossover above the signal line indicates that the short-term moving average is strengthening relative to the long-term moving average, suggesting a shift towards positive momentum for this pair.

However, this analysis reflects a dovish sentiment for the USD/CAD pair, with the 14-day Relative Strength Index (RSI) below 50. This indicates weakness in this pair and potential further decline. Key support levels include the main level around 1.3550 and the psychological support at 1.3500, which are important indicators to monitor.

If the USD/CAD pair manages to break below these levels, it may face further bearish pressure, potentially moving towards the area around last week's low at 1.3480.

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Warning!

The "USD CAD Today" analysis is based on insights from fundamental and technical perspectives from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich the readers' information. Always conduct independent research first regarding other forex information to serve as a reference in your trading.

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