Ella 
USD/CAD pared intraday gains and was trading around 1.3690 during the European session ahead of Canadian retail sales data on Friday. Investors are betting that the Federal Reserve (Fed) may not raise interest rates further, which could weaken the USD/CAD currency pair.
Technical indicators for the USD/CAD currency pair support the current downtrend. The Moving Average Convergence Divergence (MACD) line is below the midline and signal line, indicating bearish momentum for the pair.
Additionally, the 14-day Relative Strength Index (RSI) is below 50, indicating bearish sentiment, suggesting USD/CAD may encounter major support between 1.3650 and the 50.0% retracement at 1.3639.
If it breaks below the latter, bearish sentiment on the USD/CAD pair may influence its move towards the support area near 1.3600.
On the upside, if the USD/CAD pair breaks above the psychological barrier of 1.3700, a test of the 21-day exponential moving average (EMA) at the 1.3724 level is likely, followed by the main level at 1.3750. A move above this level could lead USD/CAD to move into areas near the 1.3800 level.
